IIA IIA Certifications IIA-CGAP Questions & Answers

• Question 121:

  Elements of public accountability Include all of the following EXCEPT:

  A. Performance budgeting and reporting.

  B. Financial reporting and open government.

  C. Remoteness and Complexity

  D. Evaluations and Monitoring

  Correct Answer: D

• Question 122:

  The nature of accountability means the governing body (agent) must make an accounting back to the public and/or service recipient (principal) regarding the achievement of objectives and the stewardship of resources. All of the following are certain elements of risk that exist in the principal-agent relationship EXCEPT:

  A. Consequence of error -- the cost/impact to the principal is greater than that to the agent if errors occur undetected.

  B. Moral hazards -- potential for the agent to develop a conflict of interest between the agent's own interests and those of the principal.

  C. Physical hazards

  D. Complexity -- the possibility that operations to achieve established objectives are too complex for the principal to readily understand.

  Correct Answer: C

• Question 123:

  From a government perspective, accountability involves all of the following interrelated groups EXCEPT:

  A. The general public and particularly those receiving public services.

  B. Service providers whose objectives and interests often differ from the first two.

  C. Political leaders and officials who manage service providers to be accountable for a mixture of public and private interests.

  D. Involve people with the necessary knowledge, ability, and commitment to fulfill their responsibilities.

  Correct Answer: D

• Question 124:

  _______is the fulfillment of responsible ownership on behalf of the community and it is the exercise of authority, direction, and control over an organization.

  A. Credibility

  B. Controllability

  C. Governance

  D. Accountability

  Correct Answer: C

• Question 125:

  All of the following are characteristics of good governance EXCEPT:

  A. Involve people with the necessary knowledge, ability, and commitment to fulfill their responsibilities.

  B. Are not prepared to ensure that the organization's objectives are met and that performance is satisfactory.

  C. Fulfill their accountability obligations to those whose interests they represent by reporting on the organization's performance.

  D. Are prepared to ensure that the organization's objectives are met and that performance is satisfactory.

  Correct Answer: B

• Question 126:

  _________ 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

  Correct Answer: B

• Question 127:

  ________is a concept relating to the accumulation of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial statements taken as a whole. While the ________ is responsible for forming and expressing an opinion on the financial statements, the responsibility for preparing and presenting the financial statements is that of the management of the entity.

  A. Reasonable assurance, auditor

  B. Audit policy, controller

  C. Reasonable assurance, trainer

  D. Audit record, auditor

  Correct Answer: A

• Question 128:

  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:

  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.

  Correct Answer: D

• Question 129:

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

  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.

  Correct Answer: C

• Question 130:

  The statistical section contains provides trend data and other nonfinancial information to assist in assessing a government's financial condition. All of the following are the components of this section EXCEPT:

  A. General governmental expenditures and revenues for the past 10 years.

  B. Special assessments and collections for the past 10 years.

  C. Property tax levies and assessed value information for the past100 years.

  D. Revenue bond coverage for the past 10 years.

  Correct Answer: C