Certified Government Auditing Professional (CGAP) Practice Exam

Which two sets of audit standards generally apply to government audits in the US?

1. The US Congress and the United Nations (UN).

2. The International Organization of Supreme Audit Institutions (INTOSAI) and the US comptroller general.

3. The IIA and the American Institute of Certified Public Accountants (AICPA).

4. The US comptroller general and the AICPA.

The correct answer is: The US comptroller general and the AICPA.

The correct answer highlights the two key sources of audit standards that govern government audits in the United States. The US Comptroller General is responsible for establishing Generally Accepted Government Auditing Standards (GAGAS), which are specifically tailored for government auditing and emphasize accountability and transparency in government operations. This set of standards is crucial for ensuring the integrity and reliability of audit findings in the public sector. The American Institute of Certified Public Accountants (AICPA) also plays a significant role in providing auditing standards, primarily for non-governmental audits. However, while the AICPA’s standards are widely recognized and can also be applicable to government audits, they are not the primary standards used in a strictly governmental context. The convergence of these two sets of standards provides a framework that helps enhance the audit process in government settings, ensuring that audits are conducted with high levels of professionalism and credibility. The other options include organizations and entities that either do not directly establish audit standards for government audits or are less relevant for this specific context. For example, the United Nations and INTOSAI offer frameworks for broader international auditing and accountability, but they are not specifically tailored for US government audits. In contrast, the choice involving the IIA pertains more to internal auditing rather than the external audit