Certified Government Auditing Professional (CGAP) Practice Exam

In addition to standard audit practices, which standards may be used in performance audits internationally?

1. The IIA's Standards.

2. INTOSAI Standards.

3. International Standards on Auditing (ISA) from the International Federation of Accountants (IFAC).

4. A and B.

The correct answer is: A and B.

Performance audits internationally may utilize both the IIA's Standards and the INTOSAI Standards. The IIA (Institute of Internal Auditors) provides a framework for internal auditing that is recognized and applied across various sectors, ensuring that performance audits meet a high level of quality and effectiveness. This is particularly important for government auditing, as it emphasizes the need for accountability and performance improvement within organizations. On the other hand, INTOSAI (International Organization of Supreme Audit Institutions) Standards are specifically designed for public sector auditing. These standards guide the auditing practices of government entities worldwide, focusing on ensuring that public funds are managed efficiently and used effectively. INTOSAI's framework provides specific guidance on conducting performance audits, reinforcing the importance of evaluating both the economy and efficiency of public sector programs. While the International Standards on Auditing (ISA) focus on financial audits and are mainly applicable to the private sector, they do not address the specifics required for performance audits in the governmental context. Therefore, the combination of the IIA's and INTOSAI Standards provides a robust framework necessary for conducting effective performance audits internationally.