FREE CGAP Types of Auditing Questions and Answers

Question 1

When audit is carried out throughout the year at regular or sporadic intervals, it is known as:

Accepted Answer

Continuous Audit.

Answer

A continuous audit involves the auditor examining records and transactions throughout the financial year, either at regular intervals or sporadically. This approach allows for timely detection of errors and irregularities, provides ongoing assurance, and can help expedite the year-end audit process by spreading the workload.

Question 2

The year-end audit is also known as:

Accepted Answer

Periodical audit.

Answer

The year-end audit is also known as a periodical audit because it is conducted only after the close of the financial year. All transactions for the entire accounting period are examined at once to express an opinion on the annual financial statements, making it a review of a specific, completed period.

Question 3

Between two annual audits, an audit is undertaken, and is referred to as:

Accepted Answer

Interim audit.

Answer

An interim audit is specifically undertaken between two annual audits, typically during the financial year. Its purpose is often to review transactions for a specific shorter period (e.g., quarterly or semi-annually) to facilitate interim financial reporting, dividend declarations, or to spread the audit workload throughout the year.

Question 4

The audit, which is not mandated by law but is carried out at the request of owners, is referred to as:

Accepted Answer

Private audit.

Answer

A private audit is conducted at the request of the owners or management of an entity, rather than being mandated by law. Its purpose is to provide assurance or specific information to the requesting parties, often for internal decision-making or to satisfy specific stakeholder requirements.

Question 5

the audit of government agencies and offices is referred to as:

Accepted Answer

Government audit.

Answer

A government audit specifically refers to the examination of the financial records, operations, and programs of government agencies and offices. Its primary goal is to ensure accountability, transparency, and compliance with laws and regulations in the public sector.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

FREE CGAP Types of Auditing Questions and Answers