Certified Government Auditing Professional (CGAP) Practice Exam

In a financial statement audit, which statement is NOT included in the auditor's report?

1. State whether the statements have been prepared in accordance with GAAP

2. State whether accounting principles have been consistently applied with the prior year

3. The auditor's opinion or disclaimer on the statement presentation

4. The auditor's opinion on the accuracy of performance information

The correct answer is: The auditor's opinion on the accuracy of performance information

In a financial statement audit, the auditor’s report typically includes elements that assess and communicate the integrity of the financial statements as prepared by management. The correct answer indicates that the auditor's opinion on the accuracy of performance information is not a standard component of an auditor's report. The reason this statement is correct stems from the primary focus of financial statement audits, which is to examine the adherence to established accounting principles and the true and fair presentation of financial data. Auditors evaluate the financial statements in relation to Generally Accepted Accounting Principles (GAAP) and assess whether the statements reflect a consistent application of those principles compared to the previous reporting period. Additionally, the auditor expresses an opinion or a disclaimer regarding whether the financial statements present an accurate view of the entity's financial position and are free from material misstatements. However, performance information is typically not covered under traditional financial audits. The term typically refers to measures of effectiveness and efficiency in various activities and operations rather than the financial metrics themselves, and thus it falls outside the typical purview of financial statement audits. This delineation helps maintain clarity in roles: while financial statement audits are focused on financial data accuracy and compliance, performance information is often addressed in separate performance audits or specific program evaluations. Therefore, the opinion