IIA-CGAP Online Practice Questions and Answers

Many are __________ applicable to all internal auditors, while others may be developed to meet the needs of internal auditors in a specific industry, audit specialty, or geographic area.

A. Hurricane Advisories

B. Product and services security Advisories

C. Practice Advisories

D. Security Advisories

Which institution plays a major role in auditing government accounts and operations and in promoting sound financial management and accountability in their governments?

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

B. Supreme Audit Institutions (SAIs)

C. International Organization of Supreme Audit Institutions (INTOSAI) Standards.

D. International Standards on Auditing (ISA).

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

A. Does management provide a favorable control environment in the organization?

B. Is confidential or sensitive information kept separate from other records?

C. None of the above

D. All of the above

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

Recruiting is the process of advertising job openings and encouraging candidates to Apply. Where as The primary objective of it is to provide an adequate number of qualified candidates from which a selection can be made.

A. planning, primary objective

B. recruiting, primary objective

C. selection, primary objective

D. training, primary objective

All of the following are the goals of a well-functioning group EXCEPT:

A. The group should make decisions based on sound logic and evidence. Input from all group members, regardless of rank or experience level, should be heard and evaluated fairly.

B. Achieving the overall goals of the group should not be the priority of all group members.

C. The group should recognize that individuals have different strengths and weaknesses. Roles and assignments of group members should take these strengths and weakness into account.

D. Time should be spent solving major problems instead of petty personal conflicts and concers.

The application of the appropriate audit standards is dependent on all of the following issues EXCEPT:

A. Laws and policies of the audit organization.

B. Regulations

C. Audit requirements

D. External control requirement

Techniques involved in conducting formative evaluations include all of the following EXCEPT:

A. controlling and planning

B. Program modeling and Equipment trials

C. Direct observation by evaluators and Expert judgment

D. Focus groups and Ethnographic analysis

________is a concept relating to the accumulation of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial statements taken as a whole. While the ________ is responsible for forming and expressing an opinion on the financial statements, the responsibility for preparing and presenting the financial statements is that of the management of the entity.

A. Reasonable assurance, auditor

B. Audit policy, controller

C. Reasonable assurance, trainer

D. Audit record, auditor

From a government perspective, accountability involves all of the following interrelated groups EXCEPT:

A. The general public and particularly those receiving public services.

B. Service providers whose objectives and interests often differ from the first two.

C. Political leaders and officials who manage service providers to be accountable for a mixture of public and private interests.

D. Involve people with the necessary knowledge, ability, and commitment to fulfill their responsibilities.

Beyond blatant illegal activities there are more subtle situations that can taint the public's perception of government. All of the following are the areas of ethical concerns EXCEPT:

A. Disclosure -- if any benefit from an activity is to be accrued by an employee, the relationship and benefit must be disclosed to management prior to the transaction.

B. Organizational ethics -- the environment or culture of an organization and formal and informal rules of

conduct. These can also include specific laws and regulations.

C. Gratuities and kickbacks -- a payment or inducement to promote a specific transaction or procurement activity.

D. Conflict of interest -- where an employee or family member has a financial interest in procurement activity or government transaction.

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

A. Control environment and risk assessment

B. Assessing diversification risk

C. Control activities and monitoring1

D. Information and communication

Analytical reviews are audit tests that involve a comparison of some type. There are several types of analytical reviews please choose the correct option:

A. Regression analysis

B. Ratio analysis and Cost-effectiveness analysis,

C. Cost/benefit analysis

D. All of above

Some specific problems that can occur with secondary data and suggested methods to correct those problems include all of the following EXCEPT:

A. Incomplete data

B. Irrelevant data

C. Incomparable data

D. Complete data

________ a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. Where as ________ is a costreimbursement contract that provides for the initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs:

A. Cost sharing, cost-plus-incentive-fee

B. Cost-plus-fixed-fee is, cost-plus-incentive-fee

C. Cost-reimbursement, cost sharing

D. Cost-plus-incentive-fee, cost sharing