IIA IIA Certifications IIA-CGAP Questions & Answers

• Question 271:

  What type of reviews are designed to determine whether the audit units internal quality control system is in place and operating effectively to provide reasonable assurance that established policies and procedures and applicable auditing standards are being followed or not?

  A. Quality assurance reviews

  B. Over-the-shoulder reviews

  C. Formal reviews

  D. E-mail pass-around reviews

  Correct Answer: A

• Question 272:

  Following is the information that audit charters generally address.

  A. Definition of the audit unit's responsibilities, goals, and objectives

  B. The phrases used to express the auditor's opinion are "give a true and fair view" or "present fairly, in all material respects", which are equivalent terms.

  C. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework.

  D. The auditor's opinion enhances the credibility of the financial statements, the user cannot assume that the opinion is an assurance as to the future viability of the entity nor the efficiency or effectiveness with which management has conducted the affairs of the entity.

  Correct Answer: A

• Question 273:

  All of the following items are often contained in written auditing policies and procedures in the management of an audit function EXCEPT:

  A. Definition of the audit unit's responsibilities, goals, and objectives and Legislative or other source of audit authority

  B. The reporting relationship between the audit unit and management and/or the governing Body and The process for hiring and dismissing auditors

  C. Access to information and people and the scope of work to be undertaken

  D. There must not be written rules.

  Correct Answer: D

• Question 274:

  All of the following are the benefits of internal and external reviews EXCEPT:

  A. The audit unit can learn how well its work meets applicable standards and how well it compares to that of similar audit organizations.

  B. Users of audit information can have greater confidence in the quality of work produced by an audit unit that is subject to quality reviews.

  C. Increases Professional competence and due care and confidentiality.

  D. The results of the review process enable audit department management to make necessary changed and improvements in the audit function. These adjustments might include areas such as changed in staffing policies or adjustments in training programs.

  Correct Answer: B

• Question 275:

  An assessment of management controls can influence all of the following elements of the audit program EXCEPT:

  A. Structure

  B. Methodology

  C. Scope

  D. Objectives

  Correct Answer: A

• Question 276:

  An __________ serves as the audit departments statement of purpose, authority and responsibility. Audit charters should be ___________. These are usually brief documents written in general terms. Applicable governing statutes often dictate the specific elements to include in the charter for governmental entities:

  A. Audit report, not in writing

  B. Financial report, not in writing

  C. Audit charter, in writing

  D. Financial report, in writing

  Correct Answer: C

• Question 277:

  Management controls are the plans, methods, and procedures adopted by management for measuring, reporting, and monitoring program performance. All of the following are objectives of management control EXCEPT:

  A. Validity and reliability of data.

  B. Controlled operations

  C. Program operations

  D. Compliance with laws and regulations.

  Correct Answer: B

• Question 278:

  All of the following are the General questions auditors need to answer when auditing an organization's control environment please chooses the correct option:

  A. Does management establish and maintain effective policies and procedures related to control?

  B. Does management communicate its support for controls throughout the organization?

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

  D. All of the above

  Correct Answer: D

• Question 279:

  Primary customers are those individuals or groups that sponsor the audit. All of the following are examples of primary customers EXCEPT:

  A. National governments.

  B. Regional/state governments.

  C. University and research groups.

  D. Local/city governments.

  Correct Answer: C

• Question 280:

  _________ are periodic assessments of audit quality by members of the audit staff. Where as ___________ are conducted periodically by qualified members outside the audit organization.

  A. format reviews, external reviews

  B. internal reviews, external reviews

  C. periodic reviews, internal reviews

  D. external reviews, internal reviews

  Correct Answer: B