IIA Certified Government Auditing Professional IIA-CGAP Questions & Answers

• Question 11:

  Following are the disadvantages of privatization listed below please choose the correct option:

  A. More responsiveness to service consumers and more metrics to measure performance as profit incentives are introduced.

  B. Increased potential for corruption and fraud as services are outsourced to multiple firms.

  C. More flexibility to obtain services, since multiple contractors may exist.

  D. Avoidance of expensive start-up costs by contracting governments.

  Correct Answer: B

• Question 12:

  Following are examples of the intersection of public information with privacy include please choose the correct option:

  A. Private-sector contractors' proposals or unit cost information (proprietary information related to a business that was disclosed in a proposal to provide services to a unit of government).

  B. A and C only.

  C. Income levels of clients to determine eligibility for a service (for example, free and reduced price lunch programs).

  D. Mental health data, medical records, social services provided to clients (personal information retained for specific government programs).

  E. All of the above.

  Correct Answer: E

• Question 13:

  ________can be defined as Contractual agreements can end either naturally (i.e., by reaching the termination date or delivery of the final product) or by other means. Where as ______can be define as the contractor shall maintain adequate accounting records and supporting documents to verify the amounts, recipients, and uses of all payments and funds received in conjunction with the contract for a designated period of time:

  A. Anti-kickback or non-bribery clause, right to audit

  B. Conflict of interest disclosure, anti-kickback or non-bribery clause

  C. Contract termination, right to audit

  D. Right to audit, property rights of the end product

  Correct Answer: C

• Question 14:

  Privatization can be defined as the process of returning to the private sector property or functions previously owned or performed by government. All of the Following are basic forms of government privatization EXCEPT:

  A. Sale of government assets (such as selling public housing units to tenants).

  B. Private financing of public facilities (examples are toll highways in Virginia and California).

  C. Voucher privatization - shares of ownership are distributed to all citizens, usually for free or at a very low price.

  D. Private provision of services (such as trash collection, prisons, or auditing).

  Correct Answer: C

• Question 15:

  Following are the advantages of privatization listed below please choose the correct option:

  A. Increased potential for corruption and fraud as services are outsourced to multiple firms.

  B. Reduced control over services as services are outsourced to multiple firms.

  C. Limited numbers of potential vendors (increased costs).

  D. More responsiveness to service consumers and more metrics to measure performance as profit incentives are introduced.

  Correct Answer: D

• Question 16:

  Some forms or documents that may assist in the contracting process are given below please choose the correct option:

  A. Procurement request or authorization -- prepared by internal managers.

  B. Proposal -- submitted by interested, prospective contractors.

  C. Contract document -- executed only by authorized internal procurement personnel.

  D. A and B only.

  E. All of the above.

  Correct Answer: E

• Question 17:

  Examples of standards language in contracts cover the following areas please choose the correct option:

  A. Conflict of interest disclosure.

  B. Anti-kickback or non-bribery clause.

  C. Property rights of the end product.

  D. B and C only.

  E. All of the above.

  Correct Answer: E

• Question 18:

  Government entities generally have the authority and responsibility to issue and require adherence to their policies and regulations relating to contracts. Accounting and control considerations for contracts include the following given below please choose the correct option:

  A. Development and approval of a pre-award form to ensure unobligated funds equal to the estimated amount of the contract.

  B. Specifications or statement of work describing goods and services to be obtained (including quality standards).

  C. Settlement of any advances of money and inventories of property in a manner consistent with agency policy or contract conditions.

  D. All of the above.

  E. None of the above.

  Correct Answer: D

• Question 19:

  ________ 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

  Correct Answer: B

• Question 20:

  _________ is a contract that provides for payment of allowable incurred costs to the extent prescribed in the contract. Where as ___________ a cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable 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

  Correct Answer: C