CGAP Types of Auditing 2

Question 1

A government auditor is asked to evaluate whether a state agency's workforce development program is achieving its stated goal of reducing unemployment. Which audit type is most appropriate?

Accepted Answer

Performance audit

Answer

A performance audit evaluates whether programs are achieving their intended outcomes, such as reducing unemployment.

Question 2

Which of the following best distinguishes an attestation engagement from a performance audit?

Accepted Answer

In attestation engagements, the auditor reports on a subject matter or assertion made by another party

Answer

In attestation engagements, the auditor provides assurance on a subject matter or an assertion made by a responsible party, not the auditor's own findings.

Question 3

An audit team reviews a city's grant expenditures to ensure federal funds were spent in accordance with the grant agreement. This is an example of:

Accepted Answer

Compliance audit

Answer

Compliance audits determine whether entities are following applicable laws, regulations, and agreements such as grant requirements.

Question 4

Under the Yellow Book, which type of audit work includes examining financial statements to determine whether they are presented fairly in conformity with GAAP?

Accepted Answer

Financial audits

Answer

Financial audits under the Yellow Book include examination of financial statements for fair presentation in accordance with GAAP or other applicable frameworks.

Question 5

A county internal auditor conducts an engagement to assess whether the purchasing department is following competitive bidding procedures. Which audit classification best applies?

Accepted Answer

Compliance audit

Answer

Checking adherence to bidding procedures is a compliance audit, as it measures conformity with established rules.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP Types of Auditing 2