IIA-CGAP Online Practice Questions and Answers

Which category of Professional Practices Framework can help to implement the guidance offered in the Code of Ethics, Standards, and Practice Advisories and also provide internal audit practitioners with the views of various experts on techniques and processes related to the professional practice of internal auditing?

A. Mandatory Guidance

B. Development and practice aids

C. Practice Advisories

D. Mandatory Guidance, Practice Advisories

All of the following items are often contained in written auditing policies and procedures in the management of an audit function EXCEPT:

A. Definition of the audit unit's responsibilities, goals, and objectives and Legislative or other source of audit authority

B. The reporting relationship between the audit unit and management and/or the governing Body and The process for hiring and dismissing auditors

C. Access to information and people and the scope of work to be undertaken

D. There must not be written rules.

All of following areas of financial information should be Considered by the auditors and Auditors must need to be familiar with the customers controls related to financial reporting, safeguarding financial transactions, and compliance with laws and regulations affecting the financial statements if they plan to rely on them in order to reduce substantive testing on the financial statement audit EXCEPT:

A. How transactions are classified and how transactions are initiated?

B. Who maintains the accounting records?

C. How accounting records are maintained and what accounting processes are used?

D. What methods are used to communicate financial information within the entity?

Criteria to use for selection of performance measures and data collection procedures include all of the following EXCEPT:

A. Appropriateness and Validity.

B. Uniqueness, Completeness and Comprehensibility.

C. Planning, Controlling and Organizing

D. Control ability and Timeliness of Feedback.

The following are guidelines for using performance data to evaluate performance EXCEPT:

A. Concentrate on developing ideas to improve performance in areas that are most important to the organization's goals and objectives.

B. Compare performance reports to those used by other divisions or similar operations outside the entity. Benchmark with best practices as appropriate.

C. Was the performance information collected in a cost-effective manner (i.e., do the benefits of a

performance report justify its cost)?

D. Try to determine reasons for deviations from expected values. Look for relationships between variables such as constituency satisfaction and the processing time. Consider other factors such as equipment changes or disruptions caused by weather during the period.

______is the middle position in an array of values. The median value can be misleading in small data sets, so it is usually used to characterize a large number of values. Where as the ______ is the most commonly occurring value in an array. The mode is a less frequently used measure of average because a mode may not exist in some sets of data, or there may be more than one mode in the data set.

A. Arithmetic mean, standard deviation

B. Mean, median

C. Standard deviation, arithmetic mean

D. Median, mode

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).

A. Permanent fund, enterprise fund

B. Program budgeting, Zero-based budgeting

C. General Funds, Special Revenue Funds

D. Debt Service Fund, Capital Projects Fund

________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

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:

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.

There are some compensating benefits that the public sector can offer its workforce to offset the generally higher salaries available in the private sector. These can include all of the following EXCEPT:

A. Benefits -- generous amount of paid days off per year as holidays, plus accrued vacation and reasonable health insurance.

B. Training and development -- generally at par with the private sector.

C. Incentives -- cash awards given to employees with significant cost effective suggestions.

D. None of the above.

E. All of the above.