IIA IIA-CGAP Online Practice Questions and Exam Preparation

IIA IIA-CGAP Online Questions & Answers

• Question 41:

  Managers must measure and track performance because citizens and legislative bodies are increasingly demanding evidence of the appropriate use of public resources and the achievement of public goals. Auditors must understand performance measurement because their audit objectives may call for independent measurement of organizational performance.

  A. Managers, Auditors
  B. Auditors, Managers
  C. Organizers, Leaders
  D. Planners, Organizes
  A. Managers, Auditors

• Question 42:

  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.
  E. All of the above.

• Question 43:

  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.
  C. Make graph

• Question 44:

  A systems development methodology should include standards on all of the following EXCEPT:

  A. Approval process for initiating system development and implementation of systems developed.
  B. Studying the organization.
  C. Change control procedures for new system developments and modifications to existing systems to ensure that only authorized changes are moved to production.
  D. Testing requirements, including requirements for user and programmer testing.
  B. Studying the organization.

• Question 45:

  Freedom of information legislation has set the tone for public officials that all decisions and actions are subject to review. ________and ________require that all official meetings are publicized and the general public is invited so that individuals interested in public affairs might attend.

  A. Regulatory laws and open meetings acts
  B. Sunshine laws and open meetings acts
  C. Property laws and open meetings acts
  D. Sunshine laws and closed meetings acts
  B. Sunshine laws and open meetings acts

• Question 46:

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

  A. Excessive number of year-end transactions (particularly if backed out in the next period).
  B. Unexpected overdrafts or declines in cash balance.
  C. Reluctance to provide information to auditors.
  D. High employee turnover, especially in areas that are more vulnerable to fraud.
  D. High employee turnover, especially in areas that are more vulnerable to fraud.

• Question 47:

  The steps in developing an activity-based costing system are as follows EXCEPT:

  A. Identify which areas (e.g., programs or services) will be subjected to activity based costing and determine how the results of activity-based costing will be used.
  B. Control the costs.
  C. Define the activities in the organization that produce the program or service being subjected to activity-based costing.
  D. Link the cost of resources to specific activities through the use of resource drivers
  B. Control the costs.

• Question 48:

  A ________ is a contract or contractual action entered into by a prime contractor or subcontractor for the purpose of obtaining supplies, materials, equipment, or services of any kind under a prime contract. Where as in ______________ multiple awards are given for certain contracts to more than one responsible bid. Generally, the contracts are similar in conditions and amounts.

  A. Subcontract, Multi-award contracts
  B. Multi-award contracts, Subcontract
  C. Building service contract, Facilities contract
  D. Professional and consultant services, Transportation term contracts
  A. Subcontract, Multi-award contracts

• Question 49:

  The __________ expand upon the Attribute and Performance Standards, providing guidance applicable in specific types of engagements. These standards ultimately may deal with industry specific, regional, or specialty types of audit services:

  A. Control Standards
  B. Communication Standards
  C. Implementation Standards
  D. Quality Standards
  C. Implementation Standards

• Question 50:

  An integrated budget provides the mechanism to review spending activities and make judgments on the appropriateness of those expenditures. Where as Capital budgeting is often based on the issuance of capital debt.

  A. Zero-based budgeting, program budgeting
  B. Program budgeting, zero-based budgeting
  C. Zero-based Budget, integrated Budget
  D. Integrated budget, capital budgeting
  D. Integrated budget, capital budgeting