IIA-CGAP Online Practice Questions and Answers

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

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.

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:

A. Products and services security Advisories

B. Practice Advisories

C. Security Advisories

D. Development and Practice Aids

Which category of Professional Practices Framework can help to implement the guidance offered in the Code of Ethics, Standards, and Practice Advisories and also provide internal audit practitioners with the views of various experts on techniques and processes related to the professional practice of internal auditing?

A. Mandatory Guidance

B. Development and practice aids

C. Practice Advisories

D. Mandatory Guidance, Practice Advisories

Consulting services are advisory in nature, and are generally performed at the specific request of an engagement client. The nature and scope of the consulting engagement are subject to agreement with the engagement client. All of the following are the parties generally involved in consulting services EXCEPT:

A. The person or group using the assessment ?the user.

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

C. The person or group seeking and receiving the advice ?the engagement client.

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

The ____________ promulgates standards for government organizations. INTOSAI standards are a model for government audit standards, established and endorsed by the INTOSAI organization, but which must be adopted and/or modified by the _________ of any specific country in order to be used?

A. Supreme Audit Institution (SAI), International Organization of Supreme Audit Institutions (INTOSAI)

B. International Organization of Supreme Audit Institutions (INTOSAI), International Standards for the Professional Practice of Internal Auditing (ISPPIA)

C. International Organization of Supreme Audit Institutions (INTOSAI), Supreme Audit Institution (SAI)

D. International Standards for the Professional Practice of Internal Auditing (ISPPIA), Supreme Audit Institution (SAI)

The concept of performance management shifts the focus of government decision-making and accountability away from monetary aspects to the activities undertaken to achieve results. And also effective performance management establishes programs and resources within the organization that address its agency-wide objectives and administers them through four phases:

"plan, do, check, and act." Guiding principles include long-range planning, collaborative input, a "results" orientation, decisions based upon measurable data, and continuous improvement in outcomes.

A. Effective performance management, performance management

B. Autocratic management, effective performance management

C. Performance management, effective performance management

D. Consultative management, effective performance management

The first step in managing performance is a structured, cohesive planning approach. During the ____________ managers set performance expectations based upon objectives and available resources. Where as during the _____, the program is implemented and operations commence.

A. plan" phase, "do" phase,

B. "do" phase, plan" phase,

C. "check" phase, "act" phase

D. "act" phase, "check" phase

Internal control is defined as the process effected by an entity's board of directors, management, and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the all of the following categories EXCEPT:

A. Compliance controls -- relating to the entity's compliance with applicable laws and Regulations.

B. Operations controls -- relating to the effective and efficient use of the entity's resources.

C. Information and communication.

D. Financial reporting controls -- relating to the preparation of reliable published financial statements

The scope of the audit defines the boundaries of the audit by addressing such items as the audit period or number of locations to be reviewed. Some important considerations when defining the scope of an audit include all of the following given below EXCEPT:

A. Program or management objectives (e.g., the audit may be limited to a specific program within an organization).

B. Determine how audit findings should be formulated.

C. Risks identified (inherent and control risks), also called level of risks and extent of vulnerability to the risk/strength of control activities.

D. Type and extent of problems found in prior years' audit reports and Preliminary judgment about materiality levels.

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. All of the following given below are some of the advantages of direct delivery of services by government employees EXCEPT:

A. Existing government employees might be expected to have a more thorough understanding of program objectives than a private-sector contractor hired for a one-year contract.

B. Often viewed as a more economical approach (for example, a new program is assigned to existing staff and indirect costs are not included in the analysis).

C. Increased lead time for deployment of new programs as internal staff resources are allocated among current and proposed programs.

D. Existing government employees might be expected to have increased knowledge of government regulations and requirements and the environment surrounding the program.