IIA-CGAP Online Practice Questions and Answers

Which 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?

A. Accounting services

B. Auditing services

C. Assurance services

D. Insurance services

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:

A. Not allowed applicable auditing standards.

B. Not implemented adequate audit policies and procedures.

C. Followed applicable auditing standards.

D. Not followed applicable auditing standards

All of the following are the examples of Resources (and resource drivers) EXCEPT:

A. Facilities (cost per square foot of space allocated to licensing function, times percent of renewals received).

B. Licensing staff (payroll costs for time spent receiving/processing renewal applications).

C. Central data processing equipment (equipment cost for time generation license renewal notices).

D. Determine eligibility (number of applications reviewed for eligibility).

________make decisions themselves and issue orders to subordinates without seeking their input and without regard to their feelings where as __________ use a more democratic approach to leadership. Practitioners of participate management seek out and incorporate input from subordinates when making decisions.

A. Participative managers, Autocratic managers

B. Directing managers, Consultative managers

C. Autocratic managers, Participative managers

D. Consultative managers, Directing managers

All of the following are the reporting standards in government auditing EXCEPT:

A. The auditor should plan the audit in a manner which ensures that an audit of high quality is carried out

in an economic, efficient, and effective way and in a timely manner.

B. It is for the SAI to which they belong to decide finally on the action to be taken in relation to fraudulent practices or serious irregularities discovered by the auditors.

C. At the end of each audit the auditor should prepare a written opinion or report, as appropriate, setting out the findings in an appropriate form; its content should be easy to understand and be independent, objective, fair, and constructive.

D. The work of the audit staff at each level and audit phase should be properly supervised during the audit; and documented work should be reviewed by a senior member of the audit staff.

All of the following are the guidelines that apply to the construction of a frequency distribution EXCEPT: A. Divide classes to ensure that the smallest and largest values in the array are shown.

B. Assign each item in the array to only one class.

C. Make graph

D. Keep the size of each interval the same.

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.

A. Inferential statistics, descriptive statistics

B. Standard deviation, mean

C. Descriptive statistics, inferential statistics

D. Median, arithmetic mean

Information used in reporting should be reviewed for accuracy and contain all of the following characteristics EXCEPT:

A. Relevance and understandability

B. Comparability and timeliness

C. Consistency and reliability

D. Planning an organizing

The primary purpose of financial reporting is accountability. All of the following are the basic elements of financial reporting EXCEPT:

A. Understandability

B. Reliability and Relevance

C. Timeliness and Comparability

D. Planning and leading

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:

A. Output controls

B. Input controls

C. Internal controls

D. Processing controls