Certified Government Auditing Professional (CGAP) Practice Exam

Which statement about government rules and regulations is correct?

1. The legislative body must formally approve all rules and regulations.

2. Government agencies generally have wide discretion in issuing rules and regulations.

3. Government agencies cannot issue regulations at all.

4. All rules have the same force as laws regardless of procedure followed.

The correct answer is: Government agencies generally have wide discretion in issuing rules and regulations.

The statement indicating that government agencies generally have wide discretion in issuing rules and regulations is accurate due to the administrative powers granted to these agencies by enabling legislation. This legislation typically outlines the framework within which the agencies operate, allowing them to interpret and enforce laws through regulations that fill in gaps and provide detailed guidance on how the law is implemented. Agencies are tasked with the responsibility of creating specific rules that are necessary to carry out the legislative intent, and as long as they act within the scope of their authority, they possess a significant degree of flexibility in shaping these regulations. This discretion is essential for ensuring that regulations can adapt to changing circumstances and public needs. While it is true that some regulations may eventually require legislative approval or oversight, particularly if they are contentious or impactful, the day-to-day operations and administrative rules typically fall well within the agency's purview without needing explicit legislative approval.