Certified Government Auditing Professional (CGAP) Practice Exam

What does process-based performance auditing primarily look for?

1. Management arrangements and organizational structures that waste time

2. Individual employee performance metrics

3. Compliance with external regulations

4. Return on investment for public programs

The correct answer is: Management arrangements and organizational structures that waste time

Process-based performance auditing focuses on the effectiveness and efficiency of processes within an organization. This approach examines how management arrangements and organizational structures influence the performance of programs and services. By identifying practices that may lead to time wastage, process-based performance auditing aims to enhance operational efficiency and drive improvements in service delivery. Analyzing management setups allows auditors to pinpoint bottlenecks or inefficiencies that hinder the completion of tasks, which can ultimately affect the quality of outcomes. This aspect of auditing emphasizes the importance of streamlining processes to optimize the use of resources within public programs. While other aspects like individual employee performance metrics, compliance with regulations, and return on investment are relevant to audits, they do not specifically focus on the broader organizational processes that impact overall performance. In this context, process-based performance auditing distinctly emphasizes the structural and procedural elements that could lead to inefficiencies, affirming the focus on management arrangements as the primary concern.