Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

The requirement for a report on compliance with Generally Accepted Government Auditing Standards (GAGAS) in performance audits is essential for ensuring that auditors adhere to established standards in their evaluations. GAGAS provides a framework that governs the conduct of audits in the public sector, focusing on accountability, transparency, and the effective use of resources.

In the context of performance audits, this report serves to demonstrate that the audit has been conducted in accordance with the relevant standards, promoting trust in the findings and conclusions drawn from the audit work. It is not sufficient for auditors to simply deliver results; they must also substantiate their compliance with GAGAS to uphold the integrity of their audit process and the credibility of their reports.

The other options do not directly relate to GAGAS compliance in performance audits. For instance, an analysis of operational efficiency could be beneficial in assessing performance but does not fulfill the specific compliance requirements. Similarly, the status of grant applications and yearly economic forecasts may be relevant in particular auditing scenarios but are not necessary reports required for GAGAS compliance.