CRGA's Government Auditing Standards Exam: Practice Questions

The CRGA certification journey is a rigorous one, rooted in thorough understanding and practical application. This journey is bifurcated into two major examinations: the Government Auditing Standards Exam and the Government Internal Control Standards Exam. Both are pivotal, challenging candidates to demonstrate their depth of knowledge, analytical skills, and problem-solving capabilities.

Today, let's delve a bit deeper into the Government Auditing Standards Exam.

The exam includes 75 multiple choice questions and candidates have 90 minutes to complete.

This examination draws its foundation from the GAO's Yellow Book—which meticulously outlines the standards for audits of governmental organizations, programs, activities, and functions. A cornerstone for any auditor in the public sector, the Yellow Book offers invaluable insights into governmental auditing, from the planning stages through to the impactful reporting phase.

The Government Auditing Standards Exam is designed to assess a candidate's holistic understanding of these principles and practices. It challenges them to demonstrate proficiency in four primary domains:

1. General Standards: This domain delves deep into the foundational rules set forth by the Yellow Book. Candidates will be assessed on their understanding of the importance of maintaining independence, adhering to ethical guidelines, and ensuring competence throughout the auditing process.

2. Planning the Audit: Covers the early stages of the audit process, emphasizing the importance of understanding the audited entity's environment, assessing risks, and determining the objectives and scope of the audit.

3. Performing the Audit: Assesses candidates on their ability to gather appropriate evidence through various methods, evaluate internal controls, and make informed judgments based on their findings.

4. Reporting on Audit Findings: Evaluates a candidate's knowledge of how to craft comprehensive, clear, and impactful audit reports. Topics include structuring the report, presenting findings, and ensuring compliance with governmental standards.

Preparing for such a comprehensive exam can be daunting. While some of you might be well-versed with the Yellow Book's every nuance, others might be seeking more exposure to its contents and practical applications. And that’s where we aim to assist.

We've crafted a concise quiz to offer you a snapshot of what awaits in the Government Auditing Standards Exam. As you dive into the following questions, remember that each one offers insights into the depth and breadth of knowledge expected from a CRGA-certified professional. Approach them not just as isolated questions, but as mini-scenarios, each echoing the real-world complexities you'll encounter as a government auditor.

Practice Quiz

1. Which of the following is an ethical principle that as an auditor who conducts engagements in accordance with GAGAS should follow?

A) Professional Interdependence
B) Objectivity
C) Self-interest
D) Equity

2. You must follow the Yellow Book when:

A) conducting an audit for Single Audit Act requirements
B) conducting a financial audit of a government entity
C) conducting a performance audit of a state health agency
D) conducting an audit of a pet shelter

3. If you are an auditor following GAGAS, which of the following is a CPE requirement that must be completed every two years?

A) At least 20 hours of CPE should be in government auditing, government environment, or specific environment every year
B) At least 20 hours of CPE should be completed every year.
C) At least 12 hours of CPE must directly enhance your proficiency to perform government audits.
D) No more than 24 hours in tax CPE may be claimed unless it relates to the specific environment.

4. You are auditing a research institute at Holiday University, a large private college. You pulled a statistical sample of research expenses and tested each for grant eligibility. One percent of research expenses exceeded the grant's eligibility requirements. How are you likely to classify this finding?

A) As fraud.
B) As a material internal control weakness.
C) As a structural internal control deficiency.
D) As noncompliance with grant terms.

5. During a performance audit would be increased by:

A) increasing the number of experts on the audit team
B) increasing the scope of work.
C) increasing the sample size during testing.
D) minimizing evidence.

Submit

Ready to embark on the CRGA certification journey?

First, our meticulously crafted study guides for both the Government Auditing Standards and Government Internal Control Standards exams offer comprehensive insights, ensuring you're well-versed in every critical topic. And for those seeking a more immersive experience, the specialized exam preparation courses by Parker CPE are a game-changer. Held during the week of CRGA exams, these in-depth sessions equip candidates with practical insights and strategies tailored for exam success.