Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following represents a fundamental principle under INTOSAI Auditing Standards?

1. Prepare manuals and written guidance for audit conduct

2. Review the efficiency of internal standards

3. Ensure auditors are independent and impartial

4. Apply judgement to diverse auditing situations

The correct answer is: Apply judgement to diverse auditing situations

The correct choice highlights the importance of applying judgment to various auditing situations, which is a fundamental principle in the INTOSAI Auditing Standards. This principle acknowledges that auditors must often face unique and varied circumstances that require them to assess the specifics of each situation carefully. The application of professional judgment allows auditors to determine the best course of action, tailor their audit approach, and ultimately make sound decisions that align with the goals of the audit. This principle emphasizes that rigidly following rules without understanding the underlying context can lead to less effective audits. By allowing auditors to use their expertise and judgment, they can adapt their methodologies to meet the distinct challenges presented in different auditing environments, ensuring that audits are not only compliant but also effective in achieving their objectives. In comparison, preparing manuals and written guidance, reviewing internal standards, and ensuring auditors remain independent and impartial are all important practices in the field of auditing. However, they don't capture the dynamic nature of the auditing process as effectively as the necessity for applying judgment does. Each of these practices serves a supporting role within the larger framework of audit standards but does not encapsulate the core principle of versatility and judgment as intrinsically as the chosen answer.