Certified Government Auditing Professional (CGAP) Practice Exam

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

1. GAGAS allows nonaudit services if performed in compliance with GAGAS.

2. The IIA's Standards and INTOSAI standards address nonaudit services in the same manner.

3. Training provided by auditors should focus solely on financial management controls.

4. An auditor's role in control self-assessment may vary significantly.

The correct answer is: An auditor's role in control self-assessment may vary significantly.

The statement regarding an auditor's role in control self-assessment is true because it highlights the flexible nature of auditors' involvement in this process. Control self-assessment is a technique that encourages employees to evaluate their own internal controls and processes, which allows for greater ownership and accountability. Depending on the organization and the specific circumstances, auditors can serve as facilitators, providing guidance and support, or they can take on more of an evaluative role, assessing the reliability of the self-assessment process and outcomes. This variability reflects the auditor's adaptability to different contexts and their ability to align their role with the needs and goals of the organization while maintaining objectivity. The other statements do not accurately depict the guidance provided by auditing standards or the nature of nonaudit services. For instance, while GAGAS does allow certain nonaudit services, they must be carried out with strict adherence to ethical standards and independence requirements, making the claim about compliance with GAGAS overly simplistic. Furthermore, the IIA's Standards and INTOSAI standards might have different approaches to nonaudit services, indicating that they do not address these issues in the same manner. Lastly, training provided by auditors should encompass a broader range of topics beyond just financial management controls, focusing also on compliance,