IIA-CGAP Online Practice Questions and Answers

All of the following are the Specific aspects of proper audit supervision EXCEPT:

A. Ensuring that staff auditors are qualified to perform their assignments and verifying that audit working papers adequately support audit findings, conclusions, and recommendations.

B. Providing clear and timely instructions to staff so audit objectives are achieved.

C. Approving the audit program and ensuring that it is followed, unless approved changes are made.

D. Implemented adequate audit policies and procedures.

____________ is an independent, objective assurance and consulting activity designed to add value and improve organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

A. Internal auditing

B. External auditing

C. Compliance audit

D. None

Assurance services involve the internal auditor's objective assessment of evidence to provide an independent opinion or conclusions regarding a process, system, or other subject matter. All of the following are the parties generally involved in assurance services EXCEPT:

A. The team leader

B. The person or group making the assessment ?the internal auditor

C. The person or group directly involved with the process, system, or other subject matter the process owner.

D. The person or group using the assessment ?the user.

Consulting services are advisory in nature, and are generally performed at the specific request of an engagement client. The nature and scope of the consulting engagement are subject to agreement with the engagement client. All of the following are the parties generally involved in consulting services EXCEPT:

A. The person or group using the assessment ?the user.

B. The person or group directly involved with the process, system, or other subject matter the process owner.

C. The person or group seeking and receiving the advice ?the engagement client.

D. The person or group directly involved with the process, system, or other subject matter -- the process owner.

Which of the following Advisories are submitted to a formal review process by The IIAs Professional Issues Committee or other group designated by the Guidance Planning committee?

A. Hurricane Advisories

B. Product and services security Advisories

C. Practice Advisories

D. Security Advisories

The purpose of ___________audits of is to issue an opinion on the fairness of the financial statements and to evaluate the following assertions (explicit or implicit) by management:

A. Ban reconciliation statement

B. None

C. Income

D. Financial statements

_______enables managers and auditors to directly link the costs of program resources to the objects produced, whether the objects are products or services. The link is established through the costing of the activities performed in producing the object.

A. Activity-based costing (ABC)

B. Batch costing

C. Life-Cycle costing

D. process costing

Strategic planning in government is the process of making decisions about how to achieve an entity's mandates and goals and determining the resources required to accomplish those goals. Where as Strategic plans should be updated on a regular basis and are long-term in nature:

A. Strategic plans, long-term Strategic, planning

B. Strategic planning, Short-term, Strategic plans

C. Strategic planning, Strategic plans, long-term

D. Strategic planning, Strategic plans, short-term

Governments must have a means to finance public services, with the primary means being taxation. All of the following are the primary methods of revenue generation in public administration EXCEPT:

A. Taxation, this includes federal and state income taxes, along with sales and property taxes.

B. User charges -- as individuals become increasingly less receptive to taxes, user fees or charges have been used to finance some services.

C. Employee charges

D. Transfer payments -- State and local governments receive transfer payments from the federal government.

All of the following are the additional terms that, although not mutually exclusive, help define budget authority EXCEPT:

A. Temporary authority

B. Definite appropriation authority

C. Indefinite appropriation authority

D. Current authority

Managers should develop budgets for time and dollars. Variables to consider when preparing budgets include all of the following EXCEPT:

A. Goals of the project and Availability of data.

B. Cooperation level of customer management and Projected travel (e.g., whether customer information is centralized or decentralized).

C. None of the above.

D. All of the above.

Properly conducted samples can be used to make inferences or generalizations about the entire population. The following four principles should guide sampling design:

A. A sampling technique should be used in which the probability for selecting any unit in the population can be calculated.

B. A sample should be drawn that is of appropriate size relative to the size of the population to which generalization is desired. And always test samples to ensure that they are truly representative of the population to which the evaluators hope to generalize on variables of critical interest.

C. All of the above.

D. None of the above.

In testing the controls established by management, auditors should be able to identify if there are high-risk areas for integrity violations. Auditor responsibilities for detecting integrity violations include all of the following EXCEPT:

A. Auditors should evaluate the evidence and determine the appropriate course of action. An investigation may be warranted if indicators strongly suggest that integrity violations occurred.

B. When significant control weaknesses are found, the auditor should conduct sufficient tests to determine if these weaknesses resulted in integrity violations. The level of testing should increase as the number or significance of control weaknesses increases.

C. Auditors must not have the knowledge and skills to adequately identify when violations occurred.

D. Auditors should notify the proper legal authorities, if warranted.

The most common form of service delivery is via government employees. It is this approach that has created bureaucracies at the national, regional, and, in some cases, local level. There are numerous fixed and variable costs associated with this approach. All of the following are types of costs EXCEPT:

A. Personnel compensation (salary, retirement, insurance, accident compensation, etc.).

B. Variable cost.

C. Administrative costs (travel, training, employee relations, etc.).

D. Facility costs (workplace, equipment, office supplies, etc.).

The final investigative report serves all of the following major purposes please choose the correct option:

A. Management overview or a brief summary of the case and details of the people involved and recommended actions.

B. To provide a format for recording the essential details of the integrity violation.

C. All of the above.

D. To recommend improved management and security policies.