Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following is considered documentary evidence?

1. A photograph of a client's workplace

2. A letter from a former employee alleging fraud

3. A page of the general ledger with irregularities

4. Auditor's workpaper detailing fraudulent actions

The correct answer is: A page of the general ledger with irregularities

Documentary evidence refers to any material or record that provides proof or information about a particular fact or situation. In this context, a page of the general ledger with irregularities serves as a primary piece of documentary evidence because it reflects the actual financial transactions and records of the organization. This specific documentation can be analyzed and verified, making it an essential piece of evidence in an audit. The general ledger is a foundational component of a company's financial accounting system, where all transactions are recorded, organized, and summarized. If there are irregularities noted in this document, it could indicate issues such as errors, fraud, or mismanagement, which are critical concerns during an audit. While the other options can provide insights or corroborate information, they do not serve as direct documentary evidence in the same manner as the general ledger. A photograph or a letter may offer supplementary information but do not inherently contain the financial details that the ledger provides. Similarly, an auditor's workpaper is a record of the auditor's procedures, findings, and conclusions, rather than a direct piece of documentary evidence itself. Thus, the general ledger stands out as the most definitive form of documentary evidence in this scenario.