Certified Government Auditing Professional (CGAP) Practice Exam

In an audit of a school lunch program with dual audit objectives, how would this be categorized according to GAGAS?

1. This is both a financial and performance audit.

2. This is performance audit with economy and efficiency aspects.

3. This is a "value for money" audit.

4. This is partially compliance and performance audit.

The correct answer is: This is performance audit with economy and efficiency aspects.

This scenario would be classified as a performance audit with economy and efficiency aspects, as it directly pertains to evaluating the effectiveness and efficiency of the school lunch program's operations. In the context of GAGAS (Generally Accepted Government Auditing Standards), a performance audit focuses on whether government programs are operating efficiently and effectively to achieve their intended outcomes. In the case of the school lunch program, dual audit objectives likely involve assessing both the compliance with regulations and evaluating how well the program fulfills its goals regarding nutrition and student health. The economy and efficiency aspects highlight the importance of using resources responsibly and maximizing the outcomes, ensuring that funds allocated to the program yield the highest possible benefits for the school community. While the other options touch on pertinent aspects of auditing, they don't wholly encompass the dual objectives in the context given. The "value for money" concept is indeed related to performance audits but is a broader term that doesn't capture the specific focus on economy and efficiency taken on here. Similarly, categorizing this as both a financial and performance audit would limit the understanding of the specific performance audit with a concentration on resource management. Lastly, while compliance is indeed part of the audit, it would not fully articulate the primary focus on efficiency and effectiveness implied by the dual objectives here.