Certified Government Financial Manager (CGFM) Practice Exam 2026 – Your All-in-One Guide to Exam Success!

The engagement type that requires obtaining sufficient evidence similar to financial statement audits is the examination. This type of engagement involves a thorough and detailed assessment, where the auditor gathers sufficient appropriate evidence to provide a reasonable assurance regarding the reliability of the subject matter being evaluated.

In an examination, the auditor's objective is to express an opinion on the subject matter based on the evidence collected. This level of assurance is akin to the process followed during financial statement audits, where substantial evidence is necessary to support the auditor's conclusions regarding the financial statements' fairness and accuracy.

Other engagement types do not require the same level of evidence. For example, in a review engagement, the objective is to provide limited assurance through analytical procedures and inquiries, which is less rigorous than an examination. Agreed Upon Procedures focus on specific procedures agreed upon by the parties involved, and no assurance is provided. Performance audits evaluate the efficiency and effectiveness of government programs or operations but may not require the same depth of evidential gathering as examinations or audits focused on financial statements.