Certified Government Auditing Professional (CGAP) Practice Exam

Which option best describes a preliminary survey in the audit planning process?

1. A standardized questionnaire for management objectives

2. A statistical sample of employee attitudes and skills

3. A walk-through to identify risks and controls

4. A process to familiarize with activities and identify audit areas

The correct answer is: A process to familiarize with activities and identify audit areas

A preliminary survey is an essential step in the audit planning process that aims to help auditors understand the entity's operations and assess potential risks. This step involves familiarizing oneself with the organization’s activities, structures, and key processes. By doing so, auditors can identify specific audit areas that require further examination or focus during the actual audit. This initial survey provides auditors with the context needed to develop a well-informed audit plan. Understanding the organization helps auditors determine the scope of the audit, tailor their approach, and allocate resources more effectively. It also enables them to engage with staff appropriately and identify any significant risks or control weaknesses that may not be immediately apparent. In contrast, other options focus on different aspects of audit methodology or tools. For instance, a standardized questionnaire is primarily about collating management objectives, which is a specific technique rather than an overarching strategy for understanding the organization as a whole. A statistical sample of employee attitudes and skills pertains more to employee evaluation than audit planning. A walk-through certainly helps in identifying risks and controls, but it's typically a more focused activity rather than a broad overview that the preliminary survey aims to provide.