CGFO Auditing Standards 4

Question 1

Under GAGAS, which situation would most likely impair an auditor's independence?

Accepted Answer

Auditing a department the firm helped design internal controls for two years ago

Answer

Auditing systems or controls that the audit organization designed creates a self-review threat that impairs independence under GAGAS.

Question 2

What is the required CPE hours for government auditors under GAGAS every two years?

Accepted Answer

80 hours total, 24 in government auditing

Answer

GAGAS requires auditors to complete 80 hours of CPE every two years, with at least 24 hours specifically in government auditing, financial management, or the government environment.

Question 3

An auditor discovers potential fraud during a performance audit. Under GAGAS, the auditor should:

Accepted Answer

Report the fraud suspicion to an appropriate level of management and possibly external authorities

Answer

GAGAS requires auditors to communicate fraud indications to appropriate management levels and, in some cases, to external authorities such as funding agencies.

Question 4

Which of the following best describes 'program results' in the context of a government performance audit?

Accepted Answer

Whether the program achieved its intended outcomes and was cost-effective

Answer

Performance audits assess whether government programs are achieving intended outcomes efficiently and effectively, not just financial accuracy.

Question 5

Under Uniform Guidance, federal auditees must submit their Single Audit reporting package within how many days after the fiscal year end?

Accepted Answer

180 days

Answer

The Single Audit reporting package must be submitted to the Federal Audit Clearinghouse within 30 calendar days after receipt of the auditor's reports, but no later than 9 months (approximately 270 days) — the standard submission deadline is 9 months after fiscal year end, but most agencies target the 180-day mark for timeliness.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Auditing Standards 4