IIA-CGAP Online Practice Questions and Answers

Although some Practice Advisories may be applicable to all internal auditors, others may be developed to meet the needs of a _______, a __________, or _________, including guidance on topics such as environmental issues, control self- assessment, information technology, government auditing, and guidance issued by other standard setting bodies and adopted by ______________.

A. Specific audit specialty, Specific geographic area, Specific industry, committees of The IIA

B. Specific industry, Specific geographic area, committees of The IIA, Specific audit specialty

C. Specific industry, Specific audit specialty, committees of The IIA, Specific geographic area.

D. Specific industry, Specific audit specialty, Specific geographic area, committees of The IIA.

The form and content of written policies and procedures should be appropriate to the size and structure of the auditing department and the complexity of its work. Formal administrative and technical audit manuals help employees to consistently comply with established performance standards.

Then who is responsible for developing and maintaining written policies and procedures to guide audit staff?

A. The head of the audit unit

B. A director or chief

C. The head of the department

D. Audit staff

Process measures provide a means for evaluating the use of inputs to achieve outputs. where as Outcome measures report the results associated with the products or services delivered by a program or agency program, both qualitative and quantitative.

A. Process measures, Outcome measures

B. Output measures, Input measures

C. Input measures, Output measures

D. Outcome measures, Process measures

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.

Financial management in the public sector differs significantly from its private-sector counterpart. All of the following are the basic fundamentals of public financial management EXCEPT:

A. Spending

B. Saving

C. Budgeting

D. Taxing

All of the following are characteristics of good governance EXCEPT:

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

B. Are not prepared to ensure that the organization's objectives are met and that performance is satisfactory.

C. Fulfill their accountability obligations to those whose interests they represent by reporting on the organization's performance.

D. Are prepared to ensure that the organization's objectives are met and that performance is satisfactory.

COSO was a private-sector initiative started in the 1980s to address the problem of fraudulent financial reporting. Problems continued to persist in the 1980s and the private sector was wary of additional government intervention, so all of the following five organizations banded together to form COSO please choose the correct option:

A. American Institute of Certified Public Accountants

B. Financial Executives Institute and American Accounting Association

C. Institute of Management Accountants and the Institute of Internal Auditors

D. All of the above

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

A. Instructing staff members and Developing staff performance expectations.

B. Planning audit work and reviewing work performed.

C. A and B only.

D. All of the above.

The following is a list of background items auditors should review to determine their impact on audit objectives please choose the correct option:

A. The purpose and goals for a specific program or the entire organization.

B. Organizational data (e.g., organizational charts, job descriptions, policy and procedure manuals, information system manuals).

C. A and B only.

D. None of the above.

_______ 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).

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