Certified Government Auditing Professional (CGAP) Practice Exam

According to INTOSAI standards, a regularity audit typically does not address which of the following?

1. Expression of an opinion on the financial statements

2. Audit of internal control and the internal audit function

3. Evaluation of compliance with applicable statutes and regulations

4. The overall efficiency and effectiveness of the client's programs

The correct answer is: The overall efficiency and effectiveness of the client's programs

A regularity audit, as defined by INTOSAI (International Organization of Supreme Audit Institutions) standards, is primarily focused on ensuring accountability and compliance with established laws, regulations, and financial reporting standards. This type of audit typically includes an examination of the financial statements to express an opinion on their fairness and accuracy. Moreover, it involves assessing the internal controls and the internal audit function to ensure that proper systems are in place to support the integrity of the financial reporting process. However, the overarching efficiency and effectiveness of the client's programs is generally not the primary focus of a regularity audit. This aspect falls under performance audits, which aim to evaluate the economy, efficiency, and effectiveness of government programs and operations. By distinguishing these different types of audits, it becomes clear that while regularity audits assure compliance and accuracy in financial reporting, they do not delve deeply into the performance aspect, which looks at how well government programs achieve their intended outcomes. This focus highlights the critical boundaries between various auditing purposes within the realm of government auditing.