IIA IIA-CGAP Online Practice Questions and Exam Preparation

IIA IIA-CGAP Online Questions & Answers

• Question 191:

  _______is the risk that can be controlled by various preventative measures such as adding personnel to a function, installing burglar alarms, increasing the frequency and level of management review, or implementing tighter standards. Where as _______ is the Risk that can be transferred by purchasing insurance policies to cover losses of several types such as cash, property, or facilities.

  A. Control the risk, Transfer the risk
  B. Accept the risk, Transfer the risk
  C. Transfer the risk, Control the risk
  D. Control the risk, Accept the risk
  A. Control the risk, Transfer the risk

• Question 192:

  The Standards consist of Attribute Standards, Performance Standards and Implementation standards. The __________ address the characteristics of organizations and parties performing internal audit activities. The _________ describe the nature of internal audit activities and provide quality criteria against which the performance of these services can be evaluated. While the Attribute and Performance Standards apply to all internal audit services, the ________ apply to specific types of engagements.

  A. Implementation Standards, Attribute Standards, Performance Standards
  B. Attribute Standards, Implementation Standards, Performance Standards
  C. Attribute Standards, Performance Standards, Implementation Standards
  D. Performance Standards, Implementation Standards, Attribute Standards
  C. Attribute Standards, Performance Standards, Implementation Standards

• Question 193:

  _________ is a foundation of a democratic society. Elected officials are ultimately accountable to the ________; however, all government employees are publicly accountable for their actions.

  A. Accountability, debtors
  B. Accountability, voters
  C. Credibility, creditors
  D. Controllability, voters
  B. Accountability, voters

• Question 194:

  Audit reports should state the audit objectives, scope, and methodology. If appropriate, the report should describe any performance aspects examined (e.g., outputs, outcomes). The audit scope should describe as necessary all of the following EXCEPT:

  A. The kinds and sources of evidence used.
  B. Organizational structure
  C. The depth and coverage of work performed to accomplish the audit objectives, including a description of specific controls tested.
  D. Confidential information omitted from the report.
  B. Organizational structure

• Question 195:

  Embedded controls over purchase cards can include all of the following EXCEPT:

  A. Types of transactions (prohibiting cash advances, personal items, etc.).
  B. Transaction limits per day/per month.
  C. Monthly cardholder dollar limit.
  D. Minimum dollars per transaction.
  D. Minimum dollars per transaction.

• Question 196:

  All of the following are the benefits of internal and external reviews EXCEPT:

  A. The audit unit can learn how well its work meets applicable standards and how well it compares to that of similar audit organizations.
  B. Users of audit information can have greater confidence in the quality of work produced by an audit unit that is subject to quality reviews.
  C. Increases Professional competence and due care and confidentiality.
  D. The results of the review process enable audit department management to make necessary changed and improvements in the audit function. These adjustments might include areas such as changed in staffing policies or adjustments in training programs.
  B. Users of audit information can have greater confidence in the quality of work produced by an audit unit that is subject to quality reviews.

• Question 197:

  Program audits are designed to assess whether a program, activity, or function is achieving the desired results or benefits established by the legislature or other authorizing body. Program audits consider all of the following effectiveness issues EXCEPT:

  A. Whether the program is achieving its intended objectives and is making its intended impact on stakeholders.
  B. Whether the program duplicates, overlaps, or conflicts with another program.
  C. Reported measures of economy and efficiency that are valid and reliable.
  D. Whether the organization has adequate systems for planning, managing, and monitoring to achieve its goals and objectives.
  C. Reported measures of economy and efficiency that are valid and reliable.

• Question 198:

  Properly conducted samples can be used to make inferences or generalizations about the entire population. The following four principles should guide sampling design:

  A. A sampling technique should be used in which the probability for selecting any unit in the population can be calculated.
  B. A sample should be drawn that is of appropriate size relative to the size of the population to which generalization is desired. And always test samples to ensure that they are truly representative of the population to which the evaluators hope to generalize on variables of critical interest.
  C. All of the above.
  D. None of the above.
  C. All of the above.

• Question 199:

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

• Question 200:

  The risk analysis process involves all of the following given below EXCEPT:

  A. Identify auditable activities (programs, accounts, contracts, transactions).
  B. Estimate the significance of a risk (magnitude of exposure in dollars or other type of measure, type of threat, duration)
  C. Do not Estimate the likelihood that a risk will occur and do not determine how to manage the risks.
  D. Estimate the likelihood that a risk will occur and prioritize risks.
  C. Do not Estimate the likelihood that a risk will occur and do not determine how to manage the risks.