Certified Government Auditing Professional (CGAP) Practice Exam

The audit plan is the document where the audit methodology is often outlined. This plan serves as a roadmap for the entire audit process, detailing the approach, scope, and objectives of the audit. It specifies the methods and procedures the auditors will utilize to gather evidence, assess risks, and address the specific areas of focus for the audit.

In contrast, the auditor's report presents the findings and conclusions of the audit, summarizing the results but not outlining the methodology. Financial statements provide an overview of an entity's financial performance and position but do not detail the auditing processes used to verify that information. A compliance checklist may assist in ensuring adherence to regulations or standards but does not typically define the overarching audit methodology employed. Thus, the audit plan is essential for guiding the audit process and ensuring that it is carried out systematically and effectively.