CDFM Module 3:4 (Auditing) questions with
verified answers
** Appropriateness refers to Ans✓✓✓ the quality of evidence (relevance, validity
and reliability)
** GAGAS requires auditors to prepare written or electronic audits reports that
Ans✓✓✓ Comply with standards for form, content and distribution.
** Key function of the DoD IG Ans✓✓✓ Conducts, supervises, monitors and
initiates audits and investigations related to DoD programs and operations
**An Audit Review of Internal Control can be useful in what regards Ans✓✓✓ It
is useful in designing the nature, timing, and extent of further audit procedures.
**How is quality control audits for DoD achieved? Ans✓✓✓ Through the
establishment of a quality control program based on GAGAS guidance.
**Inspector General Act of 1978 Ans✓✓✓ Requires that the Federal Inspector
General comply with the Comptroller General's standards for audits.
**Performance audit reports prepared under the Yellow Book also includes
Ans✓✓✓ GAO quality elements of timely, complete, accurate, objective,
convincing , clear and concise standards
**Sufficiency refers to Ans✓✓✓ the quantity of evidence
, **The DoD Inspector General (IG) Ans✓✓✓ Serves as an independent and
objective official in DoD
**What are some potential benefits to an audit report Ans✓✓✓ Monetary
Benefits: "Funds Put to Better use" or Questioned Cost
Non-Monetary: valuable but cannot be in expressed in monetary term.
**What can auditors do to determine reliability of information Ans✓✓✓ They
can test management's procedures or perform direct testing of the information.
**What must an auditor do with evidence that has been gathered Ans✓✓✓ The
standards require that auditors document evidence in the form of "audit
documentation" formerly called "working papers".
**What should the "audit documentation" formerly called "working papers detail
Ans✓✓✓ The document will show how (1) controls were tested (2) conclusions
were supported (3) audit objective were formulated.
**When auditors use information gathered by officials they should Ans✓✓✓
Determine what the officials of the audited entity or others did to obtain
assurance over the reliability of information.
**When data are significant to the auditors finding they should Ans✓✓✓ obtain
sufficient and appropriate evidence that computer-processed data are valid and
reliable.
verified answers
** Appropriateness refers to Ans✓✓✓ the quality of evidence (relevance, validity
and reliability)
** GAGAS requires auditors to prepare written or electronic audits reports that
Ans✓✓✓ Comply with standards for form, content and distribution.
** Key function of the DoD IG Ans✓✓✓ Conducts, supervises, monitors and
initiates audits and investigations related to DoD programs and operations
**An Audit Review of Internal Control can be useful in what regards Ans✓✓✓ It
is useful in designing the nature, timing, and extent of further audit procedures.
**How is quality control audits for DoD achieved? Ans✓✓✓ Through the
establishment of a quality control program based on GAGAS guidance.
**Inspector General Act of 1978 Ans✓✓✓ Requires that the Federal Inspector
General comply with the Comptroller General's standards for audits.
**Performance audit reports prepared under the Yellow Book also includes
Ans✓✓✓ GAO quality elements of timely, complete, accurate, objective,
convincing , clear and concise standards
**Sufficiency refers to Ans✓✓✓ the quantity of evidence
, **The DoD Inspector General (IG) Ans✓✓✓ Serves as an independent and
objective official in DoD
**What are some potential benefits to an audit report Ans✓✓✓ Monetary
Benefits: "Funds Put to Better use" or Questioned Cost
Non-Monetary: valuable but cannot be in expressed in monetary term.
**What can auditors do to determine reliability of information Ans✓✓✓ They
can test management's procedures or perform direct testing of the information.
**What must an auditor do with evidence that has been gathered Ans✓✓✓ The
standards require that auditors document evidence in the form of "audit
documentation" formerly called "working papers".
**What should the "audit documentation" formerly called "working papers detail
Ans✓✓✓ The document will show how (1) controls were tested (2) conclusions
were supported (3) audit objective were formulated.
**When auditors use information gathered by officials they should Ans✓✓✓
Determine what the officials of the audited entity or others did to obtain
assurance over the reliability of information.
**When data are significant to the auditors finding they should Ans✓✓✓ obtain
sufficient and appropriate evidence that computer-processed data are valid and
reliable.
