IIA IIA Certifications IIA-CGAP Questions & Answers

• Question 181:

  All of the following are questions auditors may ask when testing controls of safeguards over assets and records please choose the correct option:

  A. Is confidential or sensitive information kept separate from other records?

  B. Does management provide a favorable control environment in the organization?

  C. Does adequate physical security exist over assets and records? Are storerooms locked? Are equipment and inventories properly recorded? Are there adequate environmental controls over assets (e.g., appropriate temperature)?

  D. Only A and C

  Correct Answer: D

• Question 182:

  The IIA has developed the Professional Practices Framework (PPF). In general, a framework provides a structural blueprint of how a body of knowledge and guidance fits together. As a coherent system, it facilitates all of the following to a discipline or profession EXCEPT:

  A. Communication skills

  B. Application of concepts

  C. Consistent development

  D. Interpretation and methodologies

  Correct Answer: A

• Question 183:

  All of the following are the reporting standards in government auditing EXCEPT:

  A. The auditor should plan the audit in a manner which ensures that an audit of high quality is carried out

  in an economic, efficient, and effective way and in a timely manner.

  B. It is for the SAI to which they belong to decide finally on the action to be taken in relation to fraudulent practices or serious irregularities discovered by the auditors.

  C. At the end of each audit the auditor should prepare a written opinion or report, as appropriate, setting out the findings in an appropriate form; its content should be easy to understand and be independent, objective, fair, and constructive.

  D. The work of the audit staff at each level and audit phase should be properly supervised during the audit; and documented work should be reviewed by a senior member of the audit staff.

  Correct Answer: AC

• Question 184:

  Standards must be reviewed and applied appropriately during the conduct of an audit. Following are some illustrations of situations that may arise during the course of an audit EXCEPT:

  A. Qualification

  B. Independence

  C. Communication

  D. Coordination

  Correct Answer: D

• Question 185:

  Although not a generally accepted practice by most audit organizations, some may not comply with audit standards and call the final product reviews or studies. The entire following are some specific examples where standards may not be used EXCEPT:

  A. An "assignment" may have an extremely short deadline, making it virtually impossible to comply with all appropriate audit standards.

  B. The organization doesn't follow the audit standards.

  C. Assignments that are strictly tied to compliance with contract terms, regulations, or grant requirements.

  D. The requesting body (legislature, for example) may not want standards to be applied to the assignment.

  Correct Answer: B

• Question 186:

  Section _________ will detail some specific audit planning steps that are often utilized to ensure that the appropriate legal and audit standards are applied in ___________:

  A. Audit proposals, Audit engagements

  B. Audit engagements, II.C.2 (Planning)

  C. II.C.2 (Planning), Audit engagements

  D. Audit engagements, Audit proposals

  Correct Answer: C

• Question 187:

  Many _____________________ are conducted in accordance with established Standards, INTOSAI, or IFAC standards. The International Organization of Supreme Audit Institutions ______________________ promulgates standards for government organizations where as the International Federation of Accountants _________________ provides additional guidance and standards:

  A. Government audits, (IFAC), (INTOSAI)

  B. Government audits, (INTOSAI), (IFAC)

  C. (IFAC), (INTOSAI), Government audits

  D. (IFAC), Government audits, (INTOSAI)

  Correct Answer: B

• Question 188:

  The application of appropriate standards depends on all of the following EXCEPT:

  A. The objective of the engagement

  B. Availability of information.

  C. Legally binding agreement

  D. Other mandates or local requirements relevant to the audit organization and the engagement itself.

  Correct Answer: C

• Question 189:

  A __________________________ letter is usually developed with either a qualified or unqualified opinion. Obviously a qualified opinion will warrant significant remedial action by the audit organization:

  A. Opinion letter

  B. Offer letter

  C. Informal opinion letter

  D. Formal opinion letter

  Correct Answer: D

• Question 190:

  The application of the appropriate audit standards is dependent on all of the following issues EXCEPT:

  A. Laws and policies of the audit organization.

  B. Regulations

  C. Audit requirements

  D. External control requirement

  Correct Answer: D