IIA-CGAP by IIA Valid Free Exam Practice Test

Question 1

All Practice Advisories are submitted to a formal review process by the __________ or other group designated by the Guidance Planning Committee.

A. IFAC's Professional Committee B. INTOSAI's Professional Committee C. PPF's Professional Issues Committee D. IIA's Professional Issues Committee

Correct Answer: D

Question 2

Beneficiaries are people who may never read the audit report, but whose services are improved because the audit was conducted. All of the Following are Examples of beneficiaries EXCEPT:

A. Clients of the audited program and General public. B. Special interest groups (e.g., consumer advocacy groups, social service organizations, industry and trade groups, etc.). C. General public. D. Clients of the audited program.

Correct Answer: B

Question 3

Freedom of information legislation has set the tone for public officials that all decisions and actions are subject to review. ________and ________require that all official meetings are publicized and the general public is invited so that individuals interested in public affairs might attend.

A. Sunshine laws and closed meetings acts B. Property laws and open meetings acts C. Sunshine laws and open meetings acts D. Regulatory laws and open meetings acts

Correct Answer: C

Question 4

Contracts are written agreements (in most cases) that obligate the government to expenditure of money upon delivery of goods or performance of services. Following are various contract types available to ensure cost-effective delivery of services please choose the correct option:

A. All of above. B. Firm fixed-price C. Cost-plus-award-fee D. A & C only. E. Fixed-price

Correct Answer: A

Question 5

As a part of the development of the Professional Practices Framework, significant portions of the information contained in the __________ Guidelines have been converted to Practice Advisories. Omnibus Practice Advisories ___________ are based on information previously published in the ________ but have been updated to be consistent with the new Standards and the Professional Practices Framework:

A. "Blue Book", 1000-1 through 600-1, "Red Book" B. "Black Book", 2000-1 through 2600-1, "Red Book" C. "Red Book", 1000-1 through 2600-1, "Red Book" D. "Yellow Book", 100-1 through 3600-1, "Red Book"

Correct Answer: C

Question 6

Which of the following are the two broad classifications of management styles please mark the correct option:

A. Consultative management B. Participative management. C. Autocratic management D. Directing management

Correct Answer: B,C

Question 7

___________are the framework that management establishes to ensure that it meets its responsibilities in a variety of areas. The objectives _________of are that all transactions should be authorized, accounted for accurately and completely, and in the correct time frame.

A. Internal controls, accounting controls B. Internal controls, external controls C. External controls, internal controls D. accounting controls, internal controls

Correct Answer: C

Question 8

Beyond blatant illegal activities there are more subtle situations that can taint the public's perception of government. All of the following are the areas of ethical concerns EXCEPT:

A. Organizational ethics - The environment or culture of an organization and formal and informal rules of conduct. These can also include specific laws and regulations. B. Disclosure - If any benefit from an activity is to be accrued by an employee, the relationship and benefit must be disclosed to management prior to the transaction. C. Conflict of interest - Where an employee or family member has a financial interest in procurement activity or government transaction. D. Gratuities and kickbacks - A payment or inducement to promote a specific transaction or procurement activity.

Correct Answer: A

Question 9

Enterprise risk management enables management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity's objectives. Enterprise risk management encompasses al of the following EXCEPT:

A. Aligning risk appetite and strategy B. Enhancing risk response decisions and Seizing opportunities C. Risk Assessment D. Reducing operational surprises and losses

Correct Answer: C

Question 10

A _______creates an additional layer of bureaucracy and potentially creates a new base of political power that can impede progress. Where as ________can become extremely powerful as they can impact the speed and delivery of government services with requirements and enforcement actions:

A. decentralized function, decentralized agencies B. decentralized function, Centralized agencies C. centralized function, Centralized agencies D. centralized function, decentralized agencies

Correct Answer: C

Question 11

_______can be defined as A set of tasks to be costed or analyzed as a group, having both inputs and outputs. Where as _______can be defined as the mechanism that links an object with the frequency and intensity of the performance of an activity for the object.

A. activity, cost driver B. Activity, activity driver C. activity driver, cost driver D. cost driver, activity

Correct Answer: B

Question 12

All of the Following are the additional terms that, although not mutually exclusive, help define budget authority EXCEPT:

A. Definite appropriation authority B. temporary authority C. Current authority D. Indefinite appropriation authority

Correct Answer: B

Question 13

Investment risk refers to the likelihood of a loss. All of the following given below are types of investment risk EXCEPT.

A. Liquidity risk - Losses resulting because invested dollars cannot be accessed. Losses may occur from penalties for early withdrawal, for example. B. Market risk - the possibility of a loss resulting from choosing a relatively poor investment from a large pool of investments. C. Economic Risks __One of the most obvious risks of investing is that the economy can go bad. D. Default risk - the possibility of a loss resulting from the bankruptcy of an organization in which funds were invested.

Correct Answer: C

Question 14

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

A. Structure B. Scope C. Methodology. D. Objectives:

Correct Answer: A

IIA Certified Government Auditing Professional - IIA-CGAP Exam Practice Test