Certified Government Auditing Professional (CGAP) Practice Exam

What must auditors consider when providing nonaudit services?

1. Only the potential impact on audit quality.

2. The independence and objectivity of their role.

3. Whether the service will increase their workload.

4. The cost of providing the service versus its benefits.

The correct answer is: The independence and objectivity of their role.

When auditors are engaged in providing nonaudit services, a primary consideration is the independence and objectivity of their role. Auditors have a responsibility to maintain their professional integrity and impartiality throughout the audit process. Any nonaudit service provided to a client might create potential conflicts of interest or could be perceived as compromising their ability to perform an unbiased audit. The assurance of independence is vital because it affects the credibility of the audit results. If there is a perception that auditors may be influenced by their relationships or services provided to the client, stakeholders may question the integrity of the audit findings. This is particularly important in maintaining public confidence in the auditing profession as well as adherence to professional standards and regulations. While factors such as audit quality, workload, and cost-benefit considerations are relevant in the broader context of audit planning and execution, they do not take precedence over ensuring independence and objectivity. Maintaining these values is essential not only for the validity of the audit but also for preserving the reputation of the auditing profession.