Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following statements about the government auditor's use of audit standards is least accurate?

1. Government auditors may be subject to a variety or range of audit standards.

2. Government auditors are not subject to audit standards for some types of work.

3. If the audit organization follows The IIA's International Standards, those Standards prevail over laws and regulations.

4. Different sets of audit standards that might be followed have many similarities.

The correct answer is: If the audit organization follows The IIA's International Standards, those Standards prevail over laws and regulations.

The statement regarding the supremacy of The IIA's International Standards over laws and regulations is the least accurate. While The IIA's International Standards provide a framework for internal auditing practices, they do not have the authority to override laws and regulations. Compliance with legal requirements takes precedence in any audit context, and organizations must adhere to applicable laws and regulations regardless of the standards they choose to follow. Therefore, even in circumstances where auditors might utilize The IIA's standards, they must still operate within the boundaries of the law. The other statements reflect more accurate aspects of the role of audit standards in government auditing. Government auditors indeed may find themselves subject to various sets of audit standards, as different agencies may impose different requirements. There can be a situation where auditors are not bound by certain standards for specific types of work, such as informal evaluations. It is also true that many different audit standards, while unique in their specific details, share fundamental principles and objectives, leading to inherent similarities among them.