IIA Certified Government Auditing Professional IIA-CGAP Questions & Answers

• Question 41:

  All of the following are the examples of employee's red flags EXCEPT:

  A. Employee lifestyle changes: expensive cars, jewelry, homes, clothes.

  B. Behavioral changes: may be indication of drug, alcohol, or gambling problem.

  C. High employee turnover, especially in areas that are more vulnerable to fraud.

  D. Excessive number of year-end transactions (particularly if backed out in the next period).

  Correct Answer: D

• Question 42:

  A flowchart is a visual representation of how a process works. All of The following are general rules that apply to flowcharting EXCEPT:

  A. Connectors should be used to connect breaks in the flowchart (e.g., from one page to another).

  B. Ask questions in a low-key, professional style.

  C. The exit point for all flowchart symbols should be at the bottom, except for the decision symbol. The decision symbol should have two exit points; these can be on the sides or on the bottom and one side.

  D. Flowcharts generally flow from top to bottom and from left to right.

  Correct Answer: B

• Question 43:

  ________ is an analytic method that investigates the meaning of data. And It is primarily a _________where any form of communication is coded or classified in line with some conceptual framework. Important considerations are dealing with interpretation of meanings, the unit of analysis, coding categories, and the actual coding techniques.

  A. Content analysis, coding operation

  B. Cost/benefit analysis, coding operation

  C. Cost-effectiveness analysis, coding operation

  D. Regression analysis, coding operation

  Correct Answer: A

• Question 44:

  The objective of interrogatory interviews is to obtain formal evidence in a written format. The following are guidelines for effective interrogatory interviews:

  A. Keep documents of vital significance in a transparent document cover so the suspect cannot mutilate them; never leave a suspect alone in a room with important documents.

  B. Enlarge and pin to the walls any pieces of particularly incriminating evidence (e.g., forged documents, altered accounts).

  C. None of the above.

  D. All of the above.

  Correct Answer: D

• Question 45:

  Auditors and evaluators develop ________ to obtain information from customers or other stakeholders that is not readily available in the organization's data sources. Where as ______ allow auditors to obtain testimonial evidence regarding a customer's operations, activities, concerns, and initiatives.

  A. Observation, interviews

  B. Interviews, questionnaires

  C. questionnaires, Interviews

  D. Surveys, Interviews

  Correct Answer: C

• Question 46:

  All of the following are the construction issues while developing a questionnaire EXCEPT:

  A. The questions should be as simple, direct, and unambiguous as possible.

  B. Any unique or seldom used terms should be clearly defined.

  C. Response choices should be consistent (avoid use of the most positive choice first in one question, followed by a question where the most negative response choice is first).

  D. Avoid asking leading questions such as, "Do you believe that minority quotas are an unfair means of allocating political favors to specific voter groups?"

  Correct Answer: D

• Question 47:

  ___________ is a form of quasi-experimental design that allows auditors or evaluators to compare observations (such as behavioral indicators, outcomes, or other observations) from before a specific intervention to observations from after the intervention. Where as _______ is the process of identifying best practices and comparing them to one's own organization. Benchmarking allows organizations to apply state-of-the-art practices to establish goals and improve operations.

  A. Regression analysis, Data envelopment analysis

  B. Interrupted time series, Benchmarking

  C. Ratio analysis, Cost-effectiveness analysis

  D. Regression analysis, Cost-effectiveness analysis

  Correct Answer: B

• Question 48:

  _______ 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

  Correct Answer: A

• Question 49:

  _________ is a method of measuring the statistical relationship that exists between two or more variables. Auditors might use regression to estimate the effects of a particular program on its target population. Where _________ measures performance. Data envelopment analysis (DEA) expands the single-input/ single-output model of efficiency measurement to the real-world environment of multiple-input/multipleoutput organizations.

  A. Regression analysis, Data envelopment analysis

  B. Cost-effectiveness analysis, Cost/benefit analysis

  C. Coding operation, Cost-effectiveness analysis

  D. Regression analysis, Cost-effectiveness analysis

  Correct Answer: A

• Question 50:

  ________ is usually applied to testing systems of internal control and is concerned with estimating the number of errors in the population. This sampling calls for an answer on a two way scale (e.g., Yes or No, Right or Wrong). Where as _______ can be used for values such as dollar values, time periods, or weights. Estimates are based on a sample of items such as the value of inventories, the value of disallowances of travel vouchers, or the value of accounts receivable.

  A. Judgment samples, Probability samples

  B. Attributes sampling, Variables sampling

  C. Variables sampling, Attributes sampling

  D. Probability samples, Judgment samples

  Correct Answer: B