Certified Government Auditing Professional (CGAP) Practice Exam

Which statement about quality control standards is incorrect?

1. IFAC's standards apply to both organizations and auditors

2. INTOSAI, IIA, and GAGAS have the same quality control review requirements

3. GAGAS and IFAC allow for variation in internal quality control

4. Contractors must provide external quality control report copies

The correct answer is: INTOSAI, IIA, and GAGAS have the same quality control review requirements

The statement that INTOSAI, IIA, and GAGAS have the same quality control review requirements is incorrect because each of these organizations has developed their own unique quality control standards and requirements. INTOSAI (International Organization of Supreme Audit Institutions), IIA (Institute of Internal Auditors), and GAGAS (Generally Accepted Government Auditing Standards) each cater to different types of audits and auditing environments, leading to variations in their approach to quality control. For instance, GAGAS provides specific guidance tailored for government audits, while IIA focuses on internal audit standards that emphasize risk management and governance. INTOSAI standards are intended for Supreme Audit Institutions worldwide and reflect international cooperation in public sector auditing. These distinctive standards reflect the differing focuses and methodologies employed by these organizations, hence they do not have the same requirements for quality control reviews. Understanding the differences among these organizations helps auditors ensure that they are compliant with the appropriate standards for their specific context, fostering the overall reliability and credibility of audit processes.