IIA-CGAP Real Exam Questions and Verified Answers

Question 1 Single choice

Staff must be properly guided and supervised throughout the audit process. Supervision is the process by which the objectives of quality control and individual responsibility are balanced. All of the following given below are the Goals of supervision please choose the correct option:

A
Keep staff motivated by giving them a level of responsibility commensurate with their experience and performance.
B
Provide sufficient oversight of work to provide reasonable assurance that the work meets quality standards.
C
All of the above.
D
None of the above.

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Correct answer: C

Question 2 Single choice

Grants are used by governments to operate programs and provide services. Common types of grant classifications include the following given below please choose the correct option:

A
Formula grants -- legally mandated funding levels and restrictions on eligible grantees, with little or no discretion being exercised by the grantor.
B
Project grants -- similar to contracts because grantors agree to pay the grantee for services, performance, or a specific project.
C
Construction grants -- awarded only for construction of permanent facilities.
D
All of the above.
E
None of the above.

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Correct answer: D

Question 3 Single choice

The purpose of compliance audits is to test the organizations conformity with some objective standard or criteria. All of the following are attributes that contribute to an effective compliance system EXCEPT:

A
Requirements are documented and operating procedures are aligned with the requirements in such a manner as to ensure compliance and staff and management are aware of applicable requirements.
B
The organization has assigned adequate responsibility for such matters as monitoring organizational goals and objectives, operating functions, and regulatory requirements.
C
Provide continuing education and training for staff (external or in-house training courses, professional conferences, or seminars).
D
The organizational has a policy regarding acceptable operating practices and codes of conduct.

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Correct answer: C

Question 4 Single choice

The integrity violations policy should be developed based on input from the chief executive officer and the heads of the following departments: fiscal, information processing, legal, and security. Integrity violations policies should do all of the following given below please choose the correct option:

A
State management's position against integrity violations -- the organization should make it clear that integrity violations will not be tolerated and those perpetrators will be prosecuted.
B
Establish consistent penalties -- the policy should specify what types of action will result in reprimand, termination, or other consequences.
C
A & B only.
D
All of the above.

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Correct answer: C

Question 5 Single choice

Groups may be informal (e.g., peer groups) or formal (e.g., work groups defined by management).
Members of the group can have either assigned or adopted roles. Groups also develop a set of norms, or accepted standards of behavior, which group members are expected to follow.

A
informal, formal, community members
B
informal, formal, group members
C
formal, informal, group members
D
informal, formal, organization members

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Correct answer: B

Question 6 Single choice

The following are guidelines for evaluating performance reports EXCEPT:

A
Concentrate on developing ideas to improve performance in areas that are most important to the organization's goals and objectives.
B
Are the reports available in a timely manner for decision making?
C
Was the reported performance reported aggregated or disaggregated at a meaningful level?
D
Was the performance information collected in a cost-effective manner (i.e., do the benefits of a
performance report justify its cost)?

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Correct answer: A

Question 7 Single choice

________are used to allocate and account for the costs associated with providing a centralized service, such as printing, data processing, or motor pools. Where as _______is the fund where government holds or manages financial resources in a fiduciary capacity.

A
Permanent fund, Enterprise fund
B
Internal service funds, Fiduciary Fund
C
General Funds, Special Revenue Funds
D
Debt Service Fund, Capital Projects Fund

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Correct answer: A

Question 8 Single choice

________is one in which each specific budgetary account is allocated to a narrow purpose (such as travel, supplies, personnel).where as ________are the entity's efforts to tie the results of the activities or programs to the cost of operating the programs.

A
The line-item budget, Performance budgets
B
Performance budgets, the line-item budget
C
Zero-based Budget, Integrated Budget
D
Program Budget, Executive Budget

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Correct answer: A

Question 9 Single choice

The introductory section contains information that is not necessarily related to the financial statement. The
introductory section is outside of the audit scope; however, it must be reviewed by the independent
auditors to ensure that it does not contain misleading information or contradict the financial information.
Components of the introductory section include all of the following EXCEPT:

A
Report cover
B
Title page
C
Certificate of achievement
D
Offer letter

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Correct answer: D

Question 10 Single choice

________includes objectives related to an organization's goals, such as customer service, the

safeguarding and efficient use of resources, profitability, and meeting social obligations. Where as __________includes objectives related to matters such as the maintenance of proper accounting records, the reliability of information used within the organization, and of information published for third parties.

A
Reliability of internal and external reporting, Effectiveness and efficiency of operations.
B
Reliability of external and external reporting, Effectiveness and efficiency of operations.
C
Reducing operational surprises, Effectiveness and efficiency of operations.
D
Effectiveness and efficiency of operations, Reliability of internal and external reporting.

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Correct answer: D