Certified Government Auditing Professional (CGAP) Practice Exam

Which statement about the International Organization of Supreme Audit Institutions (INTOSAI) standards is NOT true?

1. INTOSAI has established basic principles and three categories of standards

2. INTOSAI's general standards apply to both the auditor and the SAI

3. INTOSAI's reporting standards require an overall opinion in a performance audit

4. INTOSAI's field standards address various aspects of auditing practice

The correct answer is: INTOSAI's reporting standards require an overall opinion in a performance audit

The correct response highlights that INTOSAI's reporting standards do not require an overall opinion in a performance audit. Unlike financial audits, where auditors render an opinion on the fairness of the financial statements, performance audits focus on assessing the economy, efficiency, and effectiveness of government programs. INTOSAI recognizes the distinct nature of performance audits, which often aim to provide insights and recommendations rather than an overarching opinion. The other statements are accurate descriptions of INTOSAI's standards. INTOSAI indeed has established basic principles along with three categories of standards: financial, performance, and compliance audits. Furthermore, the general standards put forth by INTOSAI apply to both the auditor's conduct and the operational context of the Supreme Audit Institutions (SAIs). Lastly, INTOSAI's field standards do cover various aspects of auditing practices to ensure that audits are carried out effectively and consistently across different jurisdictions.