Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following best describes the term "audit evidence"?

1. The documents created during the audit process itself.

2. The information collected to support audit conclusions.

3. The theories and methodologies employed by the auditor.

4. The final audit report presented to stakeholders.

The correct answer is: The information collected to support audit conclusions.

The term "audit evidence" is best described as the information collected to support audit conclusions. This encompasses a variety of materials that auditors gather to substantiate their findings, opinions, and decisions regarding financial statements, compliance, and operational effectiveness. Audit evidence can include documents, records, observations, and confirmations that help establish the validity and reliability of the information being audited. The reason this definition is accurate is that audit evidence serves as the basis for forming opinions and making decisions in the audit process. It is not limited to documents created during the audit itself, as those materials may not provide the comprehensive support needed for audit conclusions. Moreover, while theories and methodologies are essential for guiding the audit process, they do not constitute evidence gathered during audits. Finally, the final audit report, while an important deliverable of the audit process, summarizes the audit findings rather than representing the evidence that supports the conclusions drawn in that report. Overall, audit evidence is crucial for ensuring the credibility and reliability of the audit's results.