Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following statements about nonaudit services provided by government auditors is true?

1. The IIA's Standards and INTOSAI standards address the auditor's role in nonaudit services in exactly the same manner.

2. If auditors are asked to provide training to management and/or staff, the training should be restricted to areas related to controls over financial management.

3. An auditor's role in control self-assessment may range from very limited to very extensive.

4. When performing nonaudit work under IIA Standards, the internal auditor has essentially no need to be concerned about independence.

The correct answer is: An auditor's role in control self-assessment may range from very limited to very extensive.

The assertion that an auditor's role in control self-assessment may range from very limited to very extensive is accurate, highlighting the flexibility and variability in how government auditors engage in this practice. This variability is influenced by various factors, including the specific objectives of the engagement, the level of involvement requested by management, and the design of the self-assessment process itself. Control self-assessment can be seen as a collaborative exercise where the auditors may facilitate discussions, provide guidance, or even participate directly in the evaluation process. Depending on the context, the auditors might take on a more advisory role or be deeply involved in assessing controls, documenting processes, and recommending improvements. Recognizing this range of involvement is crucial for understanding how auditors can support organizations in evaluating their internal controls while maintaining a balance with their independence and objectivity. This aspect of the auditor's role emphasizes their adaptability and emphasizes the importance of clearly defined boundaries in any engagement to ensure that independence is preserved even when engaging in nonaudit services.