Certified Government Auditing Professional (CGAP) Practice Exam

Competent evidence is best described as evidence that:

1. Is reasonably free from error and bias and faithfully represents what it purports to represent.

2. Is obtained by observing people, property, and events.

3. Is supplementary to other evidence already gathered and tends to strengthen or confirm it.

4. Proves an intermediate fact, or group of facts, from which still other facts can be inferred.

The correct answer is: Is reasonably free from error and bias and faithfully represents what it purports to represent.

Competent evidence is characterized primarily by its reliability and relevance. It is considered competent when it is reasonably free from error and bias, while also faithfully representing the facts it purports to represent. This means that the evidence must not only be accurate but also presented in a manner that ensures it conveys a true depiction of the underlying facts. For evidence to be deemed competent in the auditing context, it must serve as a strong basis for conclusions drawn during the audit process. This is critical because the quality of an audit depends heavily on the credibility of the evidence on which findings and recommendations are based. Competent evidence supports sound decision-making and helps in achieving robust audit outcomes. In terms of the other options, while observing people, property, and events can indeed yield valuable evidence, it does not inherently ensure that this evidence is free of error or bias. Additionally, supplementary evidence can reinforce conclusions but does not necessarily indicate that the original evidence was competent. Proving an intermediate fact may be part of the evidence framework but does not address the overall reliability and representation quality of evidence itself. Hence, option A stands out as the most comprehensive definition of competent evidence in the context of auditing.