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IIA IIA-CGAP Certified Government Auditing Professional Exam Practice Test

Demo: 49 questions
Total 327 questions

Certified Government Auditing Professional Questions and Answers

Question 1

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

Options:

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.

Question 2

Strategic planning in government is the process of making decisions about how to achieve an entity’s mandates and goals and determining the resources required to accomplish those goals. Where as Strategic plans should be updated on a regular basis and are long-term in nature:

Options:

A.

Strategic plans, long-term Strategic, planning,

B.

Strategic planning, Strategic plans, short-term

C.

Strategic planning, Strategic plans, long-term

D.

Strategic planning, Short-term, Strategic plans,

Question 3

_______enables managers and auditors to directly link the costs of program resources to the objects produced, whether the objects are products or services. The link is established through the costing of the activities performed in producing the object.

Options:

A.

Activity-based costing (ABC)

B.

Life-Cycle costing

C.

process costing

D.

batch costing

Question 4

________ addresses performance measures by requiring agencies to maintain an integrated accounting and financial management system that provides for the systematic measurement of performance.

Options:

A.

British Trade Boards Acts. (2009).

B.

Small Business Act (1953)

C.

The Chief Financial Officers Act of 1990 (CFO)

D.

The Government Management Reform Act of 1994 (GMRA)

Question 5

Samples can be made more efficient by using either of the following methods please choose the correct option:

Options:

A.

Sequential or stop-or-go sampling and Discovery sampling

B.

Stratified sample and Probability samples

C.

Judgment samples and Probability samples

D.

Probability samples and Stratified sample

Question 6

_________ 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/multiple-output organizations.

Options:

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

Question 7

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:

Options:

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.

Question 8

_________attempts to use strategic planning to set the mission, goals, and objectives of programs; measure programs’ outcomes; and set benchmarks to be met by programs.

Options:

A.

Performance-based budgeting

B.

personal budgets

C.

business budgets

D.

house hold budgets

Question 9

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

Options:

A.

Identify which areas (e.g., programs or services) will be subjected to activity based costingand 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.

Question 10

Security administration is responsible for security over the computer facility, including all aspects of physical and data security. Following is a list of Control techniques for security administration please chooses the correct option:

Options:

A.

Ensuring that the computer security administration function is independent of computer operations.

B.

Ensure that there are adequate backup power sources, alarms, and prevention equipment

C.

A & D

D.

Ensuring that users and employees are counseled on security considerations.

Question 11

The policies that promote and support revenue generation often have an impact on auxiliary areas such as the economy. The economic policy of a central government generally consists of three dimensions which are given below please choose the correct option:

Options:

A.

budgeting policy

B.

Monetary policy

C.

Fiscal policy

D.

Policies with economic implications

Question 12

During the _______, the data are aggregated and formatted in a manner to facilitate management oversight of key measures. Where as the_______ involves management decision-making based upon the program evaluation.

Options:

A.

plan” phase, “do” phase,

B.

“do” phase, plan” phase,

C.

“check” phase, “act” phase

D.

“act” phase, “check” phase

Question 13

Assurance services involve the internal auditor’s objective assessment of evidence to provide an independent opinion or conclusions regarding a process, system, or other subject matter. All of the following are the parties generally involved in assurance services EXCEPT:

Options:

A.

The team leader

B.

The person or group making the assessment — the internal auditor

C.

The person or group directly involved with the process, system, or other subject matter — the process owner.

D.

The person or group using the assessment — the user.

Question 14

The ______ is the sum of the values of a group of items divided by the number of those items. Arithmetic mean is the most commonly used type of average. Where as_______ is a widely used measure of dispersion. The standard deviation represents the deviations of individual observations from the mean.

Options:

A.

arithmetic mean, Standard deviation

B.

Standard deviation, arithmetic mean

C.

mean, median

D.

median, mode

Question 15

Some of the assistance services auditors may be called on to perform, in addition to conducting audits, include all of the following given below please choose the correct option:

Options:

A.

Consulting

B.

Control Self-assessment

C.

Training

D.

All of the above.

Question 16

All of The following are considered abuses of public debt EXCEPT:

Options:

A.

Borrowing to finance operating expenditures.

B.

Borrowing beyond ability to repay.

C.

Not borrowing where corruption is widespread.

D.

Borrowing to finance no-return projects or speculative facilities.

Question 17

The term descriptive statistics refers to methods designed to describe or summarize the characteristics of a data set. All of The following analysis procedures are associated with descriptive statistics EXCEPT:

Options:

A.

Collection and organization of raw data.

B.

collection of company records

C.

collection of employee’s records

D.

Classification and graphic presentation of the data in a frequency distribution format.

Question 18

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

Options:

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.

Question 19

Circumstances that contribute to the difficulty of measuring experimental programs include all of the following EXCEPT:

Options:

A.

The program can be very small.

B.

The program may not be large enough to draw useful inferences from the results.

C.

Lack of baseline data to compare program results with.

D.

Some outcomes can be hard to measure either from the lack of measurement instruments, such as changes in self-esteem, or from the logistical difficulty in measuring.

Question 20

All of following areas of financial information should be Considered by the auditors and Auditors must need to be familiar with the customer’s controls related to financial reporting, safeguarding financial transactions, and compliance with laws and regulations affecting the financial statements if they plan to rely on them in order to reduce substantive testing on the financial statement audit EXCEPT:

Options:

A.

who maintains the accounting records?

B.

How transactions are classified and how transactions are initiated.

C.

How accounting records are maintained. And what accounting processes are used.

D.

What methods are used to communicate financial information within the entity?

Question 21

All of the following are guidelines for effective personnel management EXCEPT:

Options:

A.

Plan for personnel needs and review hiring results periodically to determine whether personnel needs are being achieved.

B.

Estimate the significance of a risk (e.g., magnitude of exposure in dollars or other type of measure, type of threat, duration, etc.).

C.

Provide continuing education and training for staff (e.g., external or in-house training courses, professional conferences, or seminars).

D.

Develop procedures to identify sources of potential hires, methods of contacting and attracting potential hires, and methods of evaluating and selecting potential hires.

Question 22

All of The following are questions auditors may ask when testing controls of safeguards over assets and records please choose the correct option:

Options:

A.

Is confidential or sensitive information kept separate from other records?

B.

Does management provide a favorable control environment in the organization?

C.

Does adequate physical security exist over assets and records? Are storerooms locked? Are equipment and inventories properly recorded? Are there adequate environmental controls over assets (e.g., appropriate temperature)?

D.

Only A & C

Question 23

The purpose of _________ is to establish the criteria or overall framework for the purposeful, systematic, and balanced steps or actions that the auditor has to follow. And they are related to the general____________, which set out the basic requirements for undertaking the tasks covered by the field standards:

Options:

A.

Control standards, Field standards

B.

Auditing standards, Field standards

C.

Field standards, Control standards

D.

Field standards, Auditing standards

Question 24

Which of the following are the two broad classifications of management styles please mark the correct option:

Options:

A.

Autocratic management

B.

Consultative management

C.

Participative management.

D.

Directing management

Question 25

The purpose of ___________audits of is to issue an opinion on the fairness of the financial statements and to evaluate the following assertions (explicit or implicit) by management:

Options:

A.

Income statement

B.

Financial statements

C.

Ban reconciliation statement

D.

Both A & B

Question 26

Some specific problems that can occur with secondary data and suggested methods to correct those problems include all of the following EXCEPT:

Options:

A.

Incomplete data

B.

Irrelevant data

C.

Incomparable data

D.

Complete data

Question 27

Activity-based costing (ABC) enables managers and auditors to directly link the costs of program resources to the objects produced, whether the objects are products or services. In addition, activity based costing can be used to obtain cost information to use in the following ways:

Options:

A.

Fee setting — Government organizations often develop fee or payment schedules for units of service.

B.

Making contracting-out decisions — many organizations are attempting to cut costs either by outsourcing various operations or by consolidating services.

C.

All of the above.

D.

None of the above.

Question 28

____________ is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Options:

A.

Both C and D

B.

Compliance audit

C.

External auditing

D.

Internal auditing

Question 29

The most common form of service delivery is via government employees. It is this approach that has created bureaucracies at the national, regional, and, in some cases, local level. There are numerous fixed and variable costs associated with this approach. All of the following are types of costs EXCEPT:

Options:

A.

Personnel compensation (salary, retirement, insurance, accident compensation, etc.).

B.

Variable cost.

C.

Administrative costs (travel, training, employee relations, etc.).

D.

Facility costs (workplace, equipment, office supplies, etc.).

Question 30

In the public sector, there are generally eight types of auditor’s reports to be included in the financial statements, these are given below please choose the correct option:

Options:

A.

Auditor’s report on the fair presentation of the financial statements.

B.

Auditor’s report on compliance with general requirements for both major and non-major federal financial assistance programs.

C.

Auditor’s report on compliance with specific requirements related to major federal financial assistance programs.

D.

All of the above.

Question 31

The third category of guidance ___________ includes a variety of materials that are developed and/or endorsed by The IIA, This category includes research studies, books, seminars, conferences, and other products and services related to the professional practice of internal auditing that do not meet the criteria for inclusion in mandatory guidance or Practice Advisories:

Options:

A.

Products & services security Advisories

B.

Practice Advisories

C.

Security Advisories

D.

Development and Practice Aids

Question 32

All of the following are the Specific aspects of proper audit supervision EXCEPT:

Options:

A.

Ensuring that staff auditors are qualified to perform their assignments and Verifying that audit working papers adequately support audit findings, conclusions, and recommendations.

B.

Providing clear and timely instructions to staff so audit objectives are achieved.

C.

Approving the audit program and ensuring that it is followed, unless approved changes are made.

D.

Implemented adequate audit policies and procedures.

Question 33

_________Help define the role and responsibilities of auditors to internal and external entities. Where as _______establish the basic principles and guidance to assist auditors in the performance of their duties?

Options:

A.

Technical standards, Standards

B.

Standards, Defense standards

C.

Audit standards, Standards

D.

Standards, Open standards

Question 34

The purpose of the external quality control review is to determine whether the organization’s internal quality control system is in place and operating effectively to provide reasonable assurance that established policies and procedures and applicable auditing standards are being followed.

Options:

A.

Quality control, Quantity control

B.

Internal quality control system, External quality control

C.

External quality control, Internal quality control system

D.

Quantity control, Quantity control

Question 35

_______can be defined as A set of tasks to be costed or analyzed as a group, having both inputs and outputs. Where as _______can be defined as the mechanism that links an object with the frequency and intensity of the performance of an activity for the object.

Options:

A.

Activity, activity driver

B.

activity driver, cost driver

C.

cost driver, activity

D.

activity, cost driver

Question 36

A material misstatement is one that the auditor determines would change or influence the opinion of a reasonable person relying on the financial statements for information. Material misstatements may result from the following please choose the correct option:

Options:

A.

Misapplication of accounting principles.

B.

Inaccurate or misleading information.

C.

Omission of necessary information.

D.

All of the above

Question 37

The term _______refers to methods designed to describe or summarize the characteristics of a data set. The term _______refers to methods designed to allow inferences or estimates to be made about the characteristics of a data set.

Options:

A.

inferential statistics, descriptive statistics

B.

standard deviation, mean

C.

descriptive statistics, inferential statistics

D.

median, arithmetic mean

Question 38

Control self-assessments help identify internal control weaknesses and solutions. Where as Auditors can assist in this process by providing direct assistance or specific information related to such areas as establishing and monitoring effective internal controls, risk assessments, and sampling.

Options:

A.

Control self-assessments, creditors

B.

Audit self-assessments, debtor

C.

Control self-assessments, Auditors

D.

Control self-assessments, owners

Question 39

_________serves in a unique capacity as an important communication link among external and internal auditors and operating management, and as a means of reducing the risk of management override of key elements of a public sector entity’s internal control structure:

Options:

A.

The audit committee

B.

cabinet committees

C.

official committees

D.

standing committees

Question 40

Personnel systems and central personnel offices typically provide all of the following services EXCEPT:

Options:

A.

Recruiting

B.

Selection

C.

Training

D.

planning

Question 41

Analytical reviews are audit tests that involve a comparison of some type. There are several types of analytical reviews please choose the correct option:

Options:

A.

Regression analysis

B.

Ratio analysis and Cost-effectiveness analysis,

C.

Cost/benefit analysis

D.

All of above

Question 42

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:

Options:

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.

Question 43

___________covers the delivery of required services such as staff training. The necessary support processes required to deliver services under this domain include the actual processing of data by application systems, often classified under application controls. Where as _________ covers all IT processes need to be assessed regularly to monitor their quality and compliance with control requirements.

Options:

A.

Acquisition and Implementation (AI), Planning and Organization (PO)

B.

Planning and Organization (PO), Acquisition and Implementation (AI)

C.

Delivery and Support (DS), Monitoring (MN)

D.

Monitoring (MN), Delivery and Support (DS)

Question 44

In addition to the characteristics described above, performance measurement information should have all of the following characteristics EXCEPT:

Options:

A.

Relevant (i.e., related to program’s objectives).

B.

easily accessible

C.

Easy to understand and use (i.e., free of jargon and with key terms defined).

D.

Accurate (i.e., complete and error free).

Question 45

_______ are measures of inputs. These input measures include both financial items such as salaries and equipment costs, as well as nonfinancial items such as the number of staff hours allocated to a particular function. ________ are defined as outputs and outcomes.

Options:

A.

Service accomplishments, Service efforts

B.

Service efforts, control efforts

C.

Service efforts, Service accomplishments

D.

service effort, management efforts

Question 46

The budget authority is generally a “ceiling” provided by law for obligations and expenditures. Some common forms of budget authority include all of the following EXCEPT:

Options:

A.

Appropriation — this is the most common form of budget authority, which permits agencies to incur obligations and expend funds.

B.

legal restrictions on an organization

C.

Public debt authority — Funds derived from the sale public debt securities of the federal government.

D.

Contract authority — statutory authority under which obligations may be entered into prior to receiving an appropriation.

Question 47

The auditors of public sector entities may be required to report on all of the following EXCEPT:

Options:

A.

reporting to the owners

B.

Compliance with legislative or regulatory requirements and related authorities;

C.

Adequacy of accounting and internal control systems;

D.

Economy, efficiency, and effectiveness of programs, projects, and activities.

Question 48

Government auditing serves a variety of customers. What are the three main types of customers which they serve please mark the correct one?

Options:

A.

Potential customers, secondary customers, and beneficiaries.

B.

Primary customers, final customers, and beneficiaries.

C.

Loyal customers, secondary customers, and beneficiaries.

D.

Primary customers, secondary customers, and beneficiaries.

Question 49

Security controls reduce or prevent disruption of service, loss of assets, and unauthorized access to equipment. An effective physical security program is necessary to protect the system and data. All of the following are techniques for security control please chooses the correct option:

Options:

A.

Establish control over access to and within the facility.

B.

Ensure that there are adequate backup power sources, alarms, and prevention equipment.

C.

Implement a written and tested disaster contingency plan.

D.

all of the above

Demo: 49 questions
Total 327 questions