Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following is NOT likely to be a performance audit focused on economy and efficiency?

1. Compliance with laws on "managing for results"

2. Compliance with law on adequate competition in procurement

3. Adequacy of value engineering/value analysis

4. Use of "just-in-time" inventory management practices

The correct answer is: Compliance with laws on "managing for results"

A performance audit focused on economy and efficiency evaluates whether an organization is using its resources in the most effective way and achieving the best possible outcomes with its expenditures. The correct answer emphasizes that compliance with laws on "managing for results" is less about measuring performance in terms of efficiency and economy and more about adherence to regulations and policies that dictate how results should be measured and reported. When considering the other options, compliance with laws regarding adequate competition in procurement relates directly to ensuring that resources are obtained efficiently while adhering to set standards, making it a key aspect of performance audits. Similarly, assessing the adequacy of value engineering/value analysis directly pertains to evaluating how well resources are utilized to maximize value, ensuring that expenditures are justified based on the outcomes. Furthermore, examining the use of "just-in-time" inventory management practices offers insights into reducing waste and improving efficiency in resource management, aligning perfectly with the objectives of a performance audit. Thus, the focus of performance audits on economy and efficiency is closely tied to direct evaluations of processes and outcomes rather than compliance with broad management regulations, making the highlighted answer the correct choice.