What are the three phases of the Governmental Audit?

What are the three phases of the Governmental Audit?

• A. Plan, Review, and Report
• B. Plan, Execute, and Close
• C. Define, Collect, and Report
• D. Initiate, Inspect, and Publish

Answer: (A)

Auditors follow a three-phase life cycle: planning, review of the work, and reporting. In the planning phase, the auditor sets objectives, defines scope, identifies risks, and determines the approach, resources, and schedule needed to carry out the audit. This sets a clear roadmap so the audit focuses on what matters and uses resources effectively. The review phase is a dedicated quality-control step where the gathered evidence is examined, tests are conducted, and work is supervised to ensure conclusions are supported and findings are accurate before finalizing the report. This stage bridges planning and reporting and helps ensure the audit stands up to scrutiny and standards. The reporting phase communicates the results to stakeholders, presenting findings, conclusions, and recommended actions, along with any management responses. This delivers accountability and transparency to those who rely on the audit. Other options don’t align with this lifecycle as cleanly: they either replace the middle stage with terms that describe doing the work without the explicit quality review, or they don’t emphasize delivering a formal, structured report.

Auditors follow a three-phase life cycle: planning, review of the work, and reporting.

In the planning phase, the auditor sets objectives, defines scope, identifies risks, and determines the approach, resources, and schedule needed to carry out the audit. This sets a clear roadmap so the audit focuses on what matters and uses resources effectively.

The review phase is a dedicated quality-control step where the gathered evidence is examined, tests are conducted, and work is supervised to ensure conclusions are supported and findings are accurate before finalizing the report. This stage bridges planning and reporting and helps ensure the audit stands up to scrutiny and standards.

The reporting phase communicates the results to stakeholders, presenting findings, conclusions, and recommended actions, along with any management responses. This delivers accountability and transparency to those who rely on the audit.

Other options don’t align with this lifecycle as cleanly: they either replace the middle stage with terms that describe doing the work without the explicit quality review, or they don’t emphasize delivering a formal, structured report.