IIA IIA Certifications IIA-CGAP Questions & Answers

• Question 131:

  The financial section contains summarized and detailed financial information and is organized in a financial reporting pyramid format. Components of the financial section include all of the following given below EXCEPT:

  A. The report of the independent auditor

  B. Work sheets

  C. Combined balance sheets

  D. Basic financial statements

  Correct Answer: B

• Question 132:

  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

  Correct Answer: D

• Question 133:

  Comprehensive annual financial report (CAFR) is the report that encompasses all funds and account groups of the primary government (including its blended component units). The CAFR should also encompass all discretely presented component units of the reporting entity. Every CAFR must contain three basic sections are given below please choose the correct option:

  A. Introductory -- Provides general information on the government's structure, personnel, and finances.

  B. Comparability -- Reports should be generally consistent to provide a comparison between entities.

  C. Financial -- Provides information on fund types, individual funds, and account groups.

  D. Statistical -- Provides trend and demographic data to present financial indicators and other useful information to assess a government's financial condition.

  Correct Answer: B

• Question 134:

  The primary purpose of financial reporting is accountability. All of the following are the basic elements of financial reporting EXCEPT:

  A. Understandability

  B. Reliability and Relevance

  C. Timeliness and Comparability

  D. Planning and leading

  Correct Answer: D

• Question 135:

  The last fund type is a fiduciary fund, where government holds or manages financial resources in a fiduciary capacity. Although considered a single fund type, there are four sub-fund types given below please choose the correct option:

  A. Proprietary Funds

  B. Non-expendable Trust Fund

  C. Expendable Trust Fund

  D. Governmental Funds

  Correct Answer: BC

• Question 136:

  ________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

  Correct Answer: A

• Question 137:

  Permanent Fund is the Endowment-like arrangements available to support the operations or programs of the government (e.g., cemetery perpetual care funds), where as ________are used when a government wants to recoup all or a portion of the cost of providing a service (i.e., utility charges, mass transit fees).

  A. Permanent fund, enterprise fund

  B. Program budgeting, Zero-based budgeting

  C. General Funds, Special Revenue Funds

  D. Debt Service Fund, Capital Projects Fund

  Correct Answer: A

• Question 138:

  General Funds are the chief operating fund for a government is called the general fund, where as Special Revenue Funds are the funds that are used when the revenue sources are earmarked for a specific purpose (special tax or grant requirement);

  A. Special Revenue Funds, General Funds

  B. Program budgeting, Zero-based budgeting

  C. General Funds, Special Revenue Funds

  D. Integrated budget, Capital budgeting

  Correct Answer: C

• Question 139:

  Debt Service Fund is money set aside to meet current and future debt service requirements are placed in debt service funds. Where as Capital Projects Fund can be defined as the funds that Governments often prefer to account for significant capital expenditures separately from their regular operations.

  A. Special Revenue Funds, General Funds

  B. Program budgeting, Zero-based budgeting

  C. General Funds, Special Revenue Funds

  D. Debt Service Fund, Capital Projects Fund

  Correct Answer: D

• Question 140:

  Capital budgeting is often based on the issuance of capital debt. Capital debt (based on GASB 11) includes all of the following debt that are issued EXCEPT:

  A. Finance the acquisition or construction of fixed assets reported on the balance sheet.

  B. No Refund existing capital debt.

  C. Finance capital grants to other governments.

  D. Finance certain nonrecurring projects or activities that have a long-term economic benefit.

  Correct Answer: B