Certified Government Auditing Professional (CGAP)
practice exam Questions And Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A | Instant
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1. Which of the following best describes the primary purpose of
government auditing?
A. To generate profits for the government
B. To ensure compliance with laws, regulations, and policies
C. To manage employee performance
D. To draft new legislation
Answer: B. To ensure compliance with laws, regulations, and
policies
Rationale: Government audits are primarily conducted to ensure that
government entities are complying with applicable laws, regulations,
and policies, and that public resources are used effectively.
2. What is the most important ethical principle for a CGAP
professional to uphold?
A. Efficiency
B. Objectivity
C. Profitability
D. Popularity
Answer: B. Objectivity
Rationale: Objectivity is essential for CGAP professionals to ensure
audit findings are unbiased and credible, which is critical in public
sector auditing.
,3. Which type of audit focuses on assessing whether government
programs achieve their intended results?
A. Financial audit
B. Compliance audit
C. Performance audit
D. Internal audit
Answer: C. Performance audit
Rationale: Performance audits examine the efficiency, effectiveness,
and economy of government programs to determine if objectives are
being met.
4. Which standard requires auditors to obtain sufficient,
appropriate evidence to support audit findings?
A. GAAP
B. GAGAS (Yellow Book)
C. IFRS
D. COSO
Answer: B. GAGAS (Yellow Book)
Rationale: The Government Auditing Standards (GAGAS), also known
as the Yellow Book, require auditors to obtain sufficient, appropriate
evidence to support conclusions and recommendations.
5. During an audit, the CGAP auditor identifies that a department is
not following procurement regulations. What is the auditor’s best
course of action?
A. Ignore the issue to avoid conflict
B. Report it to the appropriate oversight authority
C. Immediately terminate the department head
D. Adjust financial records to hide the noncompliance
,Answer: B. Report it to the appropriate oversight authority
Rationale: Auditors are responsible for reporting instances of
noncompliance to appropriate authorities to ensure corrective action
and accountability.
6. Which of the following best defines “internal control” in the
context of government auditing?
A. Policies and procedures that safeguard assets and ensure reliable
financial reporting
B. Outsourcing audit tasks to external consultants
C. A method to increase public revenue
D. The process of creating new legislation
Answer: A. Policies and procedures that safeguard assets and
ensure reliable financial reporting
Rationale: Internal controls are the processes and procedures
implemented by an organization to ensure compliance, reliability,
and protection of resources.
7. What is the primary purpose of a compliance audit?
A. To evaluate whether a program meets its objectives
B. To ensure adherence to laws, regulations, and policies
C. To assess financial profitability
D. To reduce audit costs
Answer: B. To ensure adherence to laws, regulations, and policies
Rationale: Compliance audits verify whether governmental
operations are following applicable laws, regulations, and standards.
8. Which of the following is a key component of risk assessment in
government auditing?
A. Evaluating the likelihood and impact of adverse events
B. Hiring more auditors than necessary
, C. Ignoring financial misstatements
D. Reducing reporting requirements
Answer: A. Evaluating the likelihood and impact of adverse events
Rationale: Risk assessment involves identifying and analyzing
potential risks that could affect objectives and determining the
likelihood and potential impact of those risks.
9. Which of these is considered a limitation of government
auditing?
A. Audits can detect all errors and fraud
B. Audits may not prevent future noncompliance
C. Auditors can enforce corrective actions directly
D. Audits guarantee financial profits
Answer: B. Audits may not prevent future noncompliance
Rationale: Auditing provides assurance based on evidence at a point
in time but cannot guarantee future compliance or detect all
instances of errors or fraud.
10. What type of evidence is considered most reliable in
government auditing?
A. Oral testimony from employees
B. Documentary evidence obtained directly by the auditor
C. Opinions from external consultants
D. Social media posts
Answer: B. Documentary evidence obtained directly by the auditor
Rationale: Evidence that is obtained directly by the auditor and is in a
verifiable form is generally considered most reliable.
practice exam Questions And Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following best describes the primary purpose of
government auditing?
A. To generate profits for the government
B. To ensure compliance with laws, regulations, and policies
C. To manage employee performance
D. To draft new legislation
Answer: B. To ensure compliance with laws, regulations, and
policies
Rationale: Government audits are primarily conducted to ensure that
government entities are complying with applicable laws, regulations,
and policies, and that public resources are used effectively.
2. What is the most important ethical principle for a CGAP
professional to uphold?
A. Efficiency
B. Objectivity
C. Profitability
D. Popularity
Answer: B. Objectivity
Rationale: Objectivity is essential for CGAP professionals to ensure
audit findings are unbiased and credible, which is critical in public
sector auditing.
,3. Which type of audit focuses on assessing whether government
programs achieve their intended results?
A. Financial audit
B. Compliance audit
C. Performance audit
D. Internal audit
Answer: C. Performance audit
Rationale: Performance audits examine the efficiency, effectiveness,
and economy of government programs to determine if objectives are
being met.
4. Which standard requires auditors to obtain sufficient,
appropriate evidence to support audit findings?
A. GAAP
B. GAGAS (Yellow Book)
C. IFRS
D. COSO
Answer: B. GAGAS (Yellow Book)
Rationale: The Government Auditing Standards (GAGAS), also known
as the Yellow Book, require auditors to obtain sufficient, appropriate
evidence to support conclusions and recommendations.
5. During an audit, the CGAP auditor identifies that a department is
not following procurement regulations. What is the auditor’s best
course of action?
A. Ignore the issue to avoid conflict
B. Report it to the appropriate oversight authority
C. Immediately terminate the department head
D. Adjust financial records to hide the noncompliance
,Answer: B. Report it to the appropriate oversight authority
Rationale: Auditors are responsible for reporting instances of
noncompliance to appropriate authorities to ensure corrective action
and accountability.
6. Which of the following best defines “internal control” in the
context of government auditing?
A. Policies and procedures that safeguard assets and ensure reliable
financial reporting
B. Outsourcing audit tasks to external consultants
C. A method to increase public revenue
D. The process of creating new legislation
Answer: A. Policies and procedures that safeguard assets and
ensure reliable financial reporting
Rationale: Internal controls are the processes and procedures
implemented by an organization to ensure compliance, reliability,
and protection of resources.
7. What is the primary purpose of a compliance audit?
A. To evaluate whether a program meets its objectives
B. To ensure adherence to laws, regulations, and policies
C. To assess financial profitability
D. To reduce audit costs
Answer: B. To ensure adherence to laws, regulations, and policies
Rationale: Compliance audits verify whether governmental
operations are following applicable laws, regulations, and standards.
8. Which of the following is a key component of risk assessment in
government auditing?
A. Evaluating the likelihood and impact of adverse events
B. Hiring more auditors than necessary
, C. Ignoring financial misstatements
D. Reducing reporting requirements
Answer: A. Evaluating the likelihood and impact of adverse events
Rationale: Risk assessment involves identifying and analyzing
potential risks that could affect objectives and determining the
likelihood and potential impact of those risks.
9. Which of these is considered a limitation of government
auditing?
A. Audits can detect all errors and fraud
B. Audits may not prevent future noncompliance
C. Auditors can enforce corrective actions directly
D. Audits guarantee financial profits
Answer: B. Audits may not prevent future noncompliance
Rationale: Auditing provides assurance based on evidence at a point
in time but cannot guarantee future compliance or detect all
instances of errors or fraud.
10. What type of evidence is considered most reliable in
government auditing?
A. Oral testimony from employees
B. Documentary evidence obtained directly by the auditor
C. Opinions from external consultants
D. Social media posts
Answer: B. Documentary evidence obtained directly by the auditor
Rationale: Evidence that is obtained directly by the auditor and is in a
verifiable form is generally considered most reliable.
