Certified Government Auditing Professional
(CGAP) Exam Questions and correct detailed
answers{verified answers}|already graded A+
1. Independence in a government audit requires that the auditor:
A. Follows internal agency procedures only
B. Maintains objectivity and is free from conflicts of interest
C. Is employed by the entity being audited
D. Receives directives from political officials
Independence is critical in GAGAS and requires auditors to avoid conflicts
that could compromise objectivity.
2. Which ethical principle emphasizes honesty and fairness in reporting
audit results?
A. Objectivity
B. Professional competence
C. Integrity
D. Due care
Integrity ensures that auditors report findings honestly and accurately
without bias.
3. The CGAP code of ethics requires auditors to avoid:
A. Collaboration with other auditors
B. Continuous professional education
C. Situations that impair independence or objectivity
D. Following audit standards
Auditors must avoid situations that compromise ethical standards or
independence.
4. Government auditing standards define due care as:
A. Legal liability for audit errors
B. Performing work with competence, diligence, and professionalism
C. Ensuring timely submission of reports
D. Following only management directives
Due care reflects the auditor’s responsibility to perform audit work
diligently and competently.
,Domain 2: Planning the Audit
6. What is the first step in planning a government audit?
A. Issuing the audit report
B. Developing audit tests
C. Understanding the entity and its environment
D. Conducting fieldwork
Understanding the entity helps auditors identify risks and determine the
appropriate audit approach.
7. Risk assessment in government auditing primarily focuses on:
A. Budget compliance
B. Identifying areas where material misstatements or inefficiencies
may occur
C. Documenting internal policies
D. Staff training
Risk assessment guides auditors to focus efforts on areas most
susceptible to error or fraud.
8. Materiality in a government audit is:
A. The total budget of the agency
B. The threshold above which misstatements would influence decision-
making
C. The number of audit staff assigned
D. The audit deadline
Materiality helps auditors determine which findings are significant
enough to report.
9. Which document typically outlines the objectives, scope, and
methodology of a government audit?
A. Audit working papers
B. Audit plan
C. Audit report
D. Engagement letter
An audit plan serves as a roadmap for conducting the audit efficiently
and effectively.
10.The most effective way to obtain an understanding of internal controls is
through:
A. Reading previous audit reports only
, B. Interviews, observations, and document reviews
C. Reviewing financial statements only
D. Comparing budgets year-over-year
Understanding internal controls requires a combination of procedures to
gain a complete view of processes.
Domain 3: Internal Controls and Compliance
11.Internal controls are designed to:
A. Maximize profits
B. Ensure compliance with only federal law
C. Safeguard assets, ensure accurate reporting, and promote efficiency
D. Reduce political influence
Internal controls are essential for operational integrity, accountability,
and financial accuracy.
12.Segregation of duties is a control designed to:
A. Reduce audit workload
B. Prevent errors and fraud by separating responsibilities
C. Consolidate reporting
D. Streamline processes
By separating authorization, custody, and record-keeping functions,
errors or fraud are less likely to occur.
13.Which of the following is a preventative control?
A. Reconciliation
B. Audit trail
C. Approval requirements before transactions
D. Exception reporting
Preventative controls stop errors or irregularities before they occur, such
as requiring approval for expenditures.
14.Compliance testing in a government audit primarily seeks to:
A. Confirm budget projections
B. Evaluate efficiency of operations
C. Determine adherence to laws, regulations, and policies
D. Review staff performance
Compliance testing ensures that the entity follows applicable legal and
regulatory requirements.
(CGAP) Exam Questions and correct detailed
answers{verified answers}|already graded A+
1. Independence in a government audit requires that the auditor:
A. Follows internal agency procedures only
B. Maintains objectivity and is free from conflicts of interest
C. Is employed by the entity being audited
D. Receives directives from political officials
Independence is critical in GAGAS and requires auditors to avoid conflicts
that could compromise objectivity.
2. Which ethical principle emphasizes honesty and fairness in reporting
audit results?
A. Objectivity
B. Professional competence
C. Integrity
D. Due care
Integrity ensures that auditors report findings honestly and accurately
without bias.
3. The CGAP code of ethics requires auditors to avoid:
A. Collaboration with other auditors
B. Continuous professional education
C. Situations that impair independence or objectivity
D. Following audit standards
Auditors must avoid situations that compromise ethical standards or
independence.
4. Government auditing standards define due care as:
A. Legal liability for audit errors
B. Performing work with competence, diligence, and professionalism
C. Ensuring timely submission of reports
D. Following only management directives
Due care reflects the auditor’s responsibility to perform audit work
diligently and competently.
,Domain 2: Planning the Audit
6. What is the first step in planning a government audit?
A. Issuing the audit report
B. Developing audit tests
C. Understanding the entity and its environment
D. Conducting fieldwork
Understanding the entity helps auditors identify risks and determine the
appropriate audit approach.
7. Risk assessment in government auditing primarily focuses on:
A. Budget compliance
B. Identifying areas where material misstatements or inefficiencies
may occur
C. Documenting internal policies
D. Staff training
Risk assessment guides auditors to focus efforts on areas most
susceptible to error or fraud.
8. Materiality in a government audit is:
A. The total budget of the agency
B. The threshold above which misstatements would influence decision-
making
C. The number of audit staff assigned
D. The audit deadline
Materiality helps auditors determine which findings are significant
enough to report.
9. Which document typically outlines the objectives, scope, and
methodology of a government audit?
A. Audit working papers
B. Audit plan
C. Audit report
D. Engagement letter
An audit plan serves as a roadmap for conducting the audit efficiently
and effectively.
10.The most effective way to obtain an understanding of internal controls is
through:
A. Reading previous audit reports only
, B. Interviews, observations, and document reviews
C. Reviewing financial statements only
D. Comparing budgets year-over-year
Understanding internal controls requires a combination of procedures to
gain a complete view of processes.
Domain 3: Internal Controls and Compliance
11.Internal controls are designed to:
A. Maximize profits
B. Ensure compliance with only federal law
C. Safeguard assets, ensure accurate reporting, and promote efficiency
D. Reduce political influence
Internal controls are essential for operational integrity, accountability,
and financial accuracy.
12.Segregation of duties is a control designed to:
A. Reduce audit workload
B. Prevent errors and fraud by separating responsibilities
C. Consolidate reporting
D. Streamline processes
By separating authorization, custody, and record-keeping functions,
errors or fraud are less likely to occur.
13.Which of the following is a preventative control?
A. Reconciliation
B. Audit trail
C. Approval requirements before transactions
D. Exception reporting
Preventative controls stop errors or irregularities before they occur, such
as requiring approval for expenditures.
14.Compliance testing in a government audit primarily seeks to:
A. Confirm budget projections
B. Evaluate efficiency of operations
C. Determine adherence to laws, regulations, and policies
D. Review staff performance
Compliance testing ensures that the entity follows applicable legal and
regulatory requirements.
