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IIA IIA-CGAP Certified Government Auditing Professional Exam Practice Test

Demo: 49 questions
Total 327 questions

Certified Government Auditing Professional Questions and Answers

Question 1

________ addresses performance measures by requiring agencies to maintain an integrated accounting and financial management system that provides for the systematic measurement of performance.

Options:

A.

British Trade Boards Acts. (2009).

B.

Small Business Act (1953)

C.

The Chief Financial Officers Act of 1990 (CFO)

D.

The Government Management Reform Act of 1994 (GMRA)

Question 2

There are two major categories of questions interviewers can ask. _______ require the subject to give a detailed reply. ________ usually call for Yes/No replies or suggest a possible answer.

Options:

A.

Open-ended questions, interrogative questions

B.

Open-ended questions, Closed-ended questions

C.

interrogative questions, Closed-ended questions

D.

Closed-ended questions, Open-ended questions

Question 3

The application of appropriate standards depends on all of the following EXCEPT:

Options:

A.

The objective of the engagement

B.

Availability of information.

C.

Legally binding agreement

D.

Other mandates or local requirements relevant to the audit organization and the engagement itself.

Question 4

The plans developed for the audit function should be updated as circumstances dictate. All of the following are Specific types of plans included EXCEPT:

Options:

A.

Goals for the audit unit and Criteria to measure progress toward achieving goals.

B.

Followed applicable auditing standards.

C.

Staffing plans and financial budgets and Activity reports.

D.

Audit work schedules (e.g., activities to be audited, time frames for audit, resource estimates).

Question 5

All of the following are the factors on which audit work schedules may be based on EXCEPT:

Options:

A.

Audit work schedules (e.g., activities to be audited, time frames for audit, resource estimates).

B.

The length of time since the area was last audited and the extent and type of findings in the last audit.

C.

Audits prioritized based on assessment of the degree of risk of potential loss (such as potential loss of dollars, lives, or of public trust) associated with the audit area.

D.

The occurrence of major recent changes in operations, programs, systems, or controls and the availability of audit staff resources.

Question 6

Grants are used by governments to operate programs and provide services. Common types of grant classifications include the following given below please choose the correct option:

Options:

A.

Formula grants — legally mandated funding levels and restrictions on eligible grantees, with little or no discretion being exercised by the grantor.

B.

Project grants — Similar to contracts because grantors agree to pay the grantee for services, performance, or a specific project.

C.

Construction grants — Awarded only for construction of permanent facilities.

D.

All of the above.

E.

None of the above.

Question 7

Permanent Fund is the Endowment-like arrangements available to support the operations or programs of the government (e.g., cemetery perpetual care funds).where as ________are used when a government wants to recoup all or a portion of the cost of providing a service (i.e., utility charges, mass transit fees).

Options:

A.

permanent fund, enterprise fund

B.

program budgeting, Zero-based budgeting

C.

General Funds, Special Revenue Funds

D.

Debt Service Fund, Capital Projects Fund

Question 8

If the audit organization has done what is given below then in general, reviewers can conclude there is reasonable assurance that an internal quality control system is effective. please mark the correct option:

Options:

A.

Not implemented adequate audit policies and procedures.

B.

Followed applicable auditing standards.

C.

Implemented adequate audit policies and procedures.

D.

Not followed applicable auditing standards.

Question 9

The objective of interrogatory interviews is to obtain formal evidence in a written format. The following are guidelines for effective interrogatory interviews:

Options:

A.

Keep documents of vital significance in a transparent document cover so the suspect cannot mutilate them; never leave a suspect alone in a room with important documents.

B.

Enlarge and pin to the walls any pieces of particularly incriminating evidence (e.g., forged documents, altered accounts).

C.

None of the above.

D.

All of the above.

Question 10

The first step in managing performance is a structured, cohesive planning approach. During the ____________ managers set performance expectations based upon objectives and available resources.

Where as during the _____, the program is implemented and operations commence.

Options:

A.

plan” phase, “do” phase,

B.

“do” phase, plan” phase,

C.

“check” phase, “act” phase

D.

“act” phase, “check” phase

Question 11

Who gather and analyze information and control structures in order to evaluate whether public agencies are accomplishing their objectives or not?

Options:

A.

controllers

B.

planners

C.

Auditors

D.

leaders

Question 12

_________is defined as the ongoing monitoring and reporting of program accomplishments, particularly progress toward established goals.

Options:

A.

control measurement

B.

Performance measurement

C.

Quality measurement

D.

quantity measurement

Question 13

_________Help define the role and responsibilities of auditors to internal and external entities. Where as _______establish the basic principles and guidance to assist auditors in the performance of their duties?

Options:

A.

Technical standards, Standards

B.

Standards, Defense standards

C.

Audit standards, Standards

D.

Standards, Open standards

Question 14

All of the following are objectives of a centralized function EXCEPT:

Options:

A.

Establishing reporting requirements to ensure that common budget and financial reports have similar characteristics and can be used for comparative analysis.

B.

Reducing the need for the development of guidelines for each individual agency.

C.

Summarizing reports to collect, analyze, and provide summary reports to the oversight body.

D.

Not reducing the need for the development of guidelines for each individual agency.

Question 15

All of the following are levels of ethics, each of which has its own sets of responsibilities EXCEPT:

Options:

A.

Organizational ethics — The environment or culture of an organization and formal and informal rules of conduct. These can also include specific laws and regulations.

B.

Personal morality — The basic sense of right and wrong is a function of social mores, parental influence, religious background, and personal experiences.

C.

Corporate social responsibility or CSR: an umbrella term under which the ethical rights and duties existing between companies and society is debated.

D.

Professional ethics — Professional norms and rules that govern a profession. Some professions, such as auditing, have professional codes of conducts (such as The IIA’s Code of Ethics).

Question 16

_______ can be defined as Bids shall be evaluated without discussions. Evaluations should be fairly apparent since price and price-related factors are the prevalent criteria. Where as________ can be defined as bidders must submit sealed bids to be opened at the time and place stated in the solicitation for the public opening of bids:

Options:

A.

Publicizing the invitation for bids, Preparation of invitations for bids.

B.

Evaluation of bids, Submission of bids

C.

Preparation of invitations for bids, Submission of bids

D.

All of the above.

Question 17

Telecommunication systems control the transmission of messages between users and the computer. Control over the telecommunication network is necessary to ensure that only authorized users have access to the computer facilities. Control techniques for telecommunication include all of the following EXCEPT:

Options:

A.

Implementing procedures for testing and approving telecommunication software changes.

B.

Analyzing response time, detecting problems, and documenting problem resolutions.

C.

Selecting available security options built into the telecommunications software (i.e., data encryption).

D.

Implementing standards, policies, and procedures for administering the systems programming function.

Question 18

Systems software consists of computer programs and related routines that control computer processing. Control techniques for systems software include all of the following EXCEPT:

Options:

A.

Securing dial-up lines for access to computer resources.

B.

Setting appropriate system parameters and security options for operating systems.

C.

Controlling procurement and maintenance of software licenses.

D.

Using the security features of security software effectively.

Question 19

_________serves in a unique capacity as an important communication link among external and internal auditors and operating management, and as a means of reducing the risk of management override of key elements of a public sector entity’s internal control structure:

Options:

A.

The audit committee

B.

cabinet committees

C.

official committees

D.

standing committees

Question 20

________ generally have provisions for removing sensitive information from audit files. The ________ provides that before an audit is issued to the public, auditors are responsible for removing any confidential information from the work papers.

Options:

A.

policy guidelines, Illinois State Auditing Act

B.

Audit guidelines, Illinois State Auditing Act

C.

Audit guidelines, public audit act 2001

D.

Policy guidelines, public audit act 2001

Question 21

Application controls are designed to prevent, detect, and correct errors and irregularities as transactions flow through the application. Application controls are classified into all of the following categories EXCEPT:

Options:

A.

Output controls

B.

Input controls

C.

internal controls

D.

Processing controls

Question 22

All of The following are questions auditors may ask when testing controls of safeguards over assets and records please choose the correct option:

Options:

A.

Is confidential or sensitive information kept separate from other records?

B.

Does management provide a favorable control environment in the organization?

C.

Does adequate physical security exist over assets and records? Are storerooms locked? Are equipment and inventories properly recorded? Are there adequate environmental controls over assets (e.g., appropriate temperature)?

D.

Only A & C

Question 23

The AICPA professional standards identify all of the following internal control components EXCEPT:

Options:

A.

Control environment and Risk assessment

B.

assessing diversification risk

C.

Control activities and Monitoring1

D.

Information and communication

Question 24

_________addresses performance measures by requiring all major federal agencies to prepare a financial statement that reflects not only the agency’s financial position, but also the results of operations of the agency’s offices, bureaus, and activities.

Options:

A.

British Trade Boards Acts. (2009).

B.

Small Business Act (1953)

C.

The Chief Financial Officers Act of 1990 (CFO)

D.

The Government Management Reform Act of 1994 (GMRA)

Question 25

Elements of public accountability Include all of the following EXCEPT:

Options:

A.

Performance budgeting and reporting.

B.

Financial reporting and open government.

C.

Remoteness and Complexity

D.

Evaluations and Monitoring

Question 26

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

Options:

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.

Question 27

__________have been developed to address historical concerns regarding government employment selection and compensation. Abuses of patronage systems in which the victor of political elections hired political allies led to the introduction of merit systems:

Options:

A.

Government regulatory systems

B.

Government personnel systems

C.

private personnel systems

D.

public personnel systems

Question 28

_______can be defined as the Equipment, facilities, people, supplies, or services used to produce a product or service. Where as _________is the mechanism that links the costs of resources to the activities that use the resources.

Options:

A.

Activity, activity driver

B.

resource, resource driver

C.

cost driver, activity

D.

activity, cost driver

Question 29

All of the following are guidelines for effective personnel management EXCEPT:

Options:

A.

Plan for personnel needs and review hiring results periodically to determine whether personnel needs are being achieved.

B.

Estimate the significance of a risk (e.g., magnitude of exposure in dollars or other type of measure, type of threat, duration, etc.).

C.

Provide continuing education and training for staff (e.g., external or in-house training courses, professional conferences, or seminars).

D.

Develop procedures to identify sources of potential hires, methods of contacting and attracting potential hires, and methods of evaluating and selecting potential hires.

Question 30

Some important elements of supervision include all of the following given below please choose the correct option:

Options:

A.

Instructing staff members and Developing staff performance expectations..

B.

Planning audit work and reviewing work performed.

C.

A & B only.

D.

All of the above.

Question 31

The introductory section contains information that is not necessarily related to the financial statement. The introductory section is outside of the audit scope; however, it must be reviewed by the independent auditors to ensure that it does not contain misleading information or contradict the financial information. Components of the introductory section include all of the following EXCEPT:

Options:

A.

Report cover

B.

Title page

C.

Certificate of achievement

D.

offer letter

Question 32

The purpose of an __________is to have an independent assessment of the quality of the audit unit’s work. Also __________ focus on assessing the extent the audit organization followed applicable standards in conducting its work:

Options:

A.

External reviews, internal reviews

B.

Formal reviews, external reviews

C.

Internal reviews, external reviews

D.

External reviews, external reviews

Question 33

Which services are advisory in nature, and are generally performed at the specific request of an engagement client and also the nature and scope of which services are subject to agreement with the engagement client?

Options:

A.

Auditing services

B.

Consulting services

C.

Assurance services

D.

Accounting services

Question 34

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:

Options:

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.

Question 35

Change is a basic fact of life in all organizations. Managers must be able to respond to change in a quick and effective manner. All of the following are categories of change that government managers should consider EXCEPT:

Options:

A.

Changes in the physical environment (e.g., increased population) can create an increased demand for services.

B.

Changes in technology can result in a need to change policies, procedures, staffing levels, or goals.

C.

Changes in the political environment (e.g., new administrations, new legislation) can result in a need to change or increase areas of emphasis.

D.

No Changes in the moral environment (e.g., increased emphasis of ethics in government) can result in the need for tighter controls and performance measures.

Question 36

________refers to accomplishments of services provided. These are generally measured by quantity and quality. Where as _______refers to results that occurs because of services provided and these measures are particularly useful when making comparisons to previous years, to other similar organizations, or to established missions and goals.

Options:

A.

outcome, output

B.

outputs, processes

C.

output, outcome

D.

inputs, processes

Question 37

________ supports a finding with the greatest degree of certainty. This type of evidence provides direct proof of a fact without requiring additional inference or presumption. ________ provides less certainty than direct evidence. This type of evidence generally requires the use of additional evidence to develop and support conclusions.

Options:

A.

Corroborative evidence, Primary or direct evidence

B.

Primary or direct evidence, Secondary evidence

C.

Secondary evidence, Primary or direct evidence

D.

Corroborative evidence, Primary or direct evidence

Question 38

_______ involves the comparison of projected costs and projected dollar value of benefits associated with a project or decision. _________, in contrast to cost/benefit, compares the cost of a program or activity to a measurable unit of output or outcome (rather than to the estimated or actual dollar benefits).

Options:

A.

Cost/benefit analysis, Cost-effectiveness analysis

B.

Cost-effectiveness analysis, Cost/benefit analysis

C.

Ratio analysis, Cost-effectiveness analysis

D.

Regression analysis, Cost-effectiveness analysis

Question 39

Who should approve the charter for government entities?

Options:

A.

The governing body (e.g., legislature, city council, or board)

B.

The head of the unit or agency

C.

A director or chief

D.

Government institutions

Question 40

The risk analysis process involves all of the following given below EXCEPT:

Options:

A.

Identify auditable activities (e.g., programs, accounts, contracts, transactions).

B.

Estimate the significance of a risk (e.g., magnitude of exposure in dollars or other type of measure, type of threat, duration, etc.).

C.

do not Estimate the likelihood that a risk will occur and do not determine how to manage the risks.

D.

Estimate the likelihood that a risk will occur and Prioritize risks.

Question 41

Audit reports should state the audit objectives, scope, and methodology. If appropriate, the report should describe any performance aspects examined (e.g., outputs, outcomes). The audit scope should describe as necessary all of the following EXCEPT:

Options:

A.

The kinds and sources of evidence used.

B.

Organizational structure

C.

The depth and coverage of work performed to accomplish the audit objectives, including a description of specific controls tested.

D.

Confidential information omitted from the report.

Question 42

A _______creates an additional layer of bureaucracy and potentially creates a new base of political power that can impede progress. Where as ________can become extremely powerful as they can impact the speed and delivery of government services with requirements and enforcement actions:

Options:

A.

centralized function, Centralized agencies

B.

decentralized function, Centralized agencies

C.

centralized function, decentralized agencies

D.

decentralized function, decentralized agencies

Question 43

All of the following are major steps in the strategic planning process EXCEPT:

Options:

A.

To develop the general outline.

B.

Develop one or more general statements that address what the entity aims to achieve.

C.

Develop specific plans, a method for achieving those plans, and resource allocations. The plans should contain measurable objectives and implementation or achievement time frames.

D.

Communicate the plan to affected staff. Consider sharing early drafts of the plan with staff to obtain their input and to ensure their support of the plan.

Question 44

If specific integrity violations are suspected or detected, auditors may find it necessary to seek guidance from legal counsel, investigative staff, or law enforcement officials to get all of the following information EXCEPT:

Options:

A.

Identify applicable laws and regulations.

B.

Design specific tests of compliance with applicable laws and regulations.

C.

Changing the results of the audit or investigation.

D.

Assist with areas of the audit or investigation requiring special expertise.

Question 45

The third category of guidance ___________ includes a variety of materials that are developed and/or endorsed by The IIA, This category includes research studies, books, seminars, conferences, and other products and services related to the professional practice of internal auditing that do not meet the criteria for inclusion in mandatory guidance or Practice Advisories:

Options:

A.

Products & services security Advisories

B.

Practice Advisories

C.

Security Advisories

D.

Development and Practice Aids

Question 46

The right of the public to protect its own interests by seeking information, and also limiting the manner in which personal records can be used, has affected government practices in all of the following areas listed below EXCEPT.

Options:

A.

Agency responsibilities — each agency should provide guidance to the public that describes its policies and procedures and steps required to request information. Upon receiving a valid request, a government agency must provide the relevant record(s) in a prompt, no solicitous manner.

B.

Elected or appointed officials — Sunshine laws have done away with private “behind closed doors” meetings where decisions, which directly impact citizens, were once made.

C.

Confidential or inside information — Using a government position and knowledge of government initiatives to make financial gain. For example, purchasing a piece of property that will be adjacent to a proposed government project.

D.

Customer/client privacy — Some information is exempt from the public, and conversely, individuals have the opportunity to amend any errant information with regard to themselves.

Question 47

Governmental auditing is distinctive and encompasses different requirements from auditing commercial or not-for-profit enterprises. The standards that apply specifically to government audits are all of the following EXCEPT:

Options:

A.

International Auditing and Assurance Standards Board (IAASB).

B.

International Standards for the Professional Practice of Internal Auditing (ISPPIA).

C.

International Standards on Auditing (ISA).

D.

International Organization of Supreme Audit Institutions (INTOSAI) Standards.

Question 48

The term _______refers to methods designed to describe or summarize the characteristics of a data set. The term _______refers to methods designed to allow inferences or estimates to be made about the characteristics of a data set.

Options:

A.

inferential statistics, descriptive statistics

B.

standard deviation, mean

C.

descriptive statistics, inferential statistics

D.

median, arithmetic mean

Question 49

Auditors and evaluators develop ________ to obtain information from customers or other stakeholders that is not readily available in the organization’s data sources. Where as ______ allow auditors to obtain testimonial evidence regarding a customer’s operations, activities, concerns, and initiatives.

Options:

A.

observation, interviews

B.

Interviews, questionnaires

C.

questionnaires, Interviews

D.

surveys, Interviews

Demo: 49 questions
Total 327 questions