Certified Government Auditing Professional (CGAP) Practice Exam

What is one primary component of an ideal disaster contingency plan in auditing?

1. Resource allocation to improve performance.

2. Strategies for post-incident recovery and operations.

3. Automation of all input processes.

4. Establishment of audit trails for transaction logs.

The correct answer is: Strategies for post-incident recovery and operations.

A primary component of an ideal disaster contingency plan in auditing is the development of strategies for post-incident recovery and operations. This aspect focuses on how an organization can effectively restore its critical functions and continue operations after a disaster event, ensuring minimal disruption to services and maintaining the integrity of the audit process. Planning for post-incident recovery includes identifying essential functions, prioritizing tasks that need to be restored, and outlining the processes and responsibilities for recovery efforts. This also involves setting clear communication protocols to inform stakeholders and staff about the recovery status and procedures. Effective post-incident recovery plans reduce the long-term impact of disasters on an organization’s operations, enabling it to resume normal activities swiftly. This planning is crucial in maintaining public trust and compliance with regulatory requirements in government auditing.