Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following is an appropriate consulting activity for a government internal audit organization?

1. Designing systems of controls

2. Drafting procedures for systems of controls

3. Reviewing systems of controls before implementation

4. Installing systems of controls

The correct answer is: Reviewing systems of controls before implementation

The selection of reviewing systems of controls before implementation as the appropriate consulting activity for a government internal audit organization is grounded in the fundamental role of internal auditing. Internal auditors are tasked with evaluating the adequacy and effectiveness of controls, as well as ensuring that these controls are aligned with organizational objectives. Reviewing systems of controls allows auditors to provide valuable feedback on the design and potential effectiveness of these controls, ensuring that the systems will work as intended upon implementation. This activity also supports the government entity's governance and risk management processes. It is a forward-looking approach that enables management to make informed decisions regarding the controls before they are put into operation, thereby enhancing the likelihood that they will function effectively. In contrast, tasks such as designing or drafting procedures for systems of controls may involve conflicts of interest or lead to a lack of objectivity in the auditor's evaluations. Similarly, installing systems of controls moves the role of the auditor into operational responsibilities, which is typically beyond the scope of internal audit practices. Therefore, focusing on the review process aligns with the internal auditor's role as an independent evaluator, promoting sound governance and accountability in the organization.