Certified Government Auditing Professional (CGAP) Practice Exam

How should auditors view internal control questionnaires (ICQs)?

1. They are a "necessary evil."

2. They provide necessary support for deficiency findings

3. They are useful, but further assessment is needed

4. They have little value in most cases

The correct answer is: They are useful, but further assessment is needed

Auditors should view internal control questionnaires (ICQs) as useful tools that provide initial insights into the effectiveness of internal controls, but they are not comprehensive on their own. While ICQs can highlight areas of strength or potential weakness in a control environment, they typically require further assessment to gain a complete understanding of internal controls' effectiveness. The value of ICQs lies in their ability to gather information systematically from various personnel regarding existing processes and practices. However, merely relying on responses from ICQs could lead to an incomplete analysis. Thus, it is essential for auditors to follow up ICQ results with additional inquiry, observation, and testing of controls to confirm the effectiveness of the responses gathered. This layered approach ensures that the evaluation of internal controls is thorough and accurate, making ICQs a starting point rather than a definitive measure.