Certified Government Auditing Professional (CGAP) Practice Exam

During an audit, if there are violations of established procedures, what approach should the auditor take?

1. Ignore minor deviations to maintain relationships

2. Document all violations thoroughly

3. Report the violations only if they are material

4. Consult with legal counsel before proceeding

The correct answer is: Document all violations thoroughly

The most appropriate approach for an auditor upon discovering violations of established procedures is to document all violations thoroughly. This practice is essential for several reasons. Firstly, thorough documentation provides an objective record of what was found during the audit. This record can serve as evidence of non-compliance and is critical for accountability. It allows the auditor to support their findings and recommendations, ensuring that the audit process maintains its integrity. Secondly, documenting all violations creates a basis for further analysis and discussion between the auditor and the organization being audited. It helps identify patterns or systemic issues that need addressing, enhancing the overall quality of the audit. Additionally, having complete documentation is vital in case of any future inquiries or examinations. It safeguards the auditor and the auditing body by maintaining transparency in the process and decisions made. While other options might seem to provide a way to ease interactions or manage perceptions, they do not uphold the professionalism and rigor expected in the auditing field. Ignoring minor deviations could lead to larger systemic issues being overlooked. Reporting only material violations could downplay the importance of minor issues that, while not material on their own, might indicate broader problems. Consulting legal counsel, while important in certain situations, isn't a standard step for every violation found and may unnecessarily complicate the process