IIA IIA Certifications IIA-CGAP Questions & Answers

• Question 151:

  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:

  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.

  Correct Answer: C

• Question 152:

  Financial management in the public sector differs significantly from its private-sector counterpart. All of the following are the basic fundamentals of public financial management EXCEPT:

  A. Spending

  B. Saving

  C. Budgeting

  D. Taxing

  Correct Answer: C

• Question 153:

  Taxation is the most common form of revenue generation for governments; however, there are other sources. All of the following are some of the common forms of revenue generation EXCEPT:

  A. Property tax -- this is the mainstay of most local governments and is a tax on land and improvements such as buildings.

  B. Income taxes that are paid as a percentage of your income.

  C. Flat tax -- the same tax rate is charged to all taxpayers.

  D. All the liabilities

  Correct Answer: D

• Question 154:

  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:

  A. Budgeting policy

  B. Monetary policy

  C. Fiscal policy

  D. Policies with economic implications

  Correct Answer: BCD

• Question 155:

  If the state and local governments are not ready to meet the guidelines of GASB 34, the consequences may be serious and costly. The implications of noncompliance include all of the following EXCEPT:

  A. Qualified or adverse opinion on financial statements from external auditors.

  B. Improves financial credibility.

  C. Possible regulatory violations and Diminished public trust.

  D. Decrease in bond rating and corresponding increase in cost of financing debt.

  Correct Answer: B

• Question 156:

  The mission of the _________is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports, and guide and educate the public, including issuers, auditors, and users of those financial reports. ___________establishes new requirements for the annual financial reporting for state and local government.

  A. Generally Accepted Accounting Principles (GAAP), GASB's Statement No. 34

  B. GASB's Statement No. 34, Generally Accepted Accounting Principles (GAAP),

  C. UNIFORM BUDGETING AND ACCOUNTING ACT Act 2 of 1968, GASB's Statement No. 34

  D. Governmental Accounting Standards Board (GASB), GASB's Statement No. 34

  Correct Answer: D

• Question 157:

  Financial management in the public sector differs significantly from its private-sector counterpart. The foundation of the public financial management system is based on the following principles EXCEPT:

  A. Democratic consent

  B. Accessibility

  C. Probity and Prudence

  D. Equity and Transparency

  Correct Answer: B

• Question 158:

  The audit process helps ensure transparency, probity, prudence, and, of course, accountability in public financial management. Following are examples of transparency, where public knowledge and scrutiny may change management decisions EXCEPT:

  A. Public employee salaries

  B. Other perks

  C. Private employee salaries

  D. Travel expenses

  Correct Answer: C

• Question 159:

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

  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.

  Correct Answer: A

• Question 160:

  Surrogate measures that can be used to measure a fire prevention program's success can be documented by the number of classes and students, or a test or survey identifying knowledge gained from the class. Other prevention programs that are challenged by linking programs to surrogate outcomes include all of the following EXCEPT:

  A. Continuous Improvement.

  B. Teen pregnancy prevention.

  C. Drug and alcohol prevention programs.

  D. Early education intervention programs.

  Correct Answer: A