Question 1

A typical objective of a performance audit is for the auditor to:

Accepted Answer

A)  determine whether the financial report presents the entity's operations fairly. 
B)  evaluate the feasibility of attaining the entity's operational objectives. 
C)  make recommendations for improving performance. 
D)  report on the entity's relative success in attaining profit maximisation. 
A)  determine whether the financial report presents the entity's operations fairly. 
B)  evaluate the feasibility of attaining the entity's operational objectives. 
C)  make recommendations for improving performance. 
D)  report on the entity's relative success in attaining profit maximisation. C

Question 2

Government activities may be carried out through:

Accepted Answer

A)  government departments. 
B)  statutory authorities. 
C)  companies. 
D)  All of the given answers are correct. 
A)  government departments. 
B)  statutory authorities. 
C)  companies. 
D)  All of the given answers are correct. D

Question 3

It is not a primary purpose of a performance audit to provide:

Accepted Answer

A)  a means of assurance that internal controls are functioning as planned. 
B)  a measure of management performance in meeting organisation goals. 
C)  the results of internal examinations of financial and accounting matters to a company's top-level management. 
D)  an aid to the external auditor who is conducting the examination of the financial report. 
A)  a means of assurance that internal controls are functioning as planned. 
B)  a measure of management performance in meeting organisation goals. 
C)  the results of internal examinations of financial and accounting matters to a company's top-level management. 
D)  an aid to the external auditor who is conducting the examination of the financial report. D

Question 4

Which of the following statements best describes the term 'outcomes' in a performance audit?

Accepted Answer

A)  Number of units produced. 
B)  Service provided by a particular government program. 
C)  Consequences for the community of the government program. 
D)  Economy and efficiency of resources used in achieving outputs. 
A)  Number of units produced. 
B)  Service provided by a particular government program. 
C)  Consequences for the community of the government program. 
D)  Economy and efficiency of resources used in achieving outputs.

Question 5

What is the main concern of performance auditing?

Accepted Answer

A)  Compliance with relevant laws and regulations. 
B)  Probity. 
C)  Financial report attest auditing. 
D)  Efficiency, economy and effectiveness. 
A)  Compliance with relevant laws and regulations. 
B)  Probity. 
C)  Financial report attest auditing. 
D)  Efficiency, economy and effectiveness.

Question 6

Peer reviews of public sector audit offices are normally directed by:

Accepted Answer

A)  the Prime Minister/Premier. 
B)  the Treasurer/Minister for Finance. 
C)  public accounts committees. 
D)  specific legislative requirements. 
A)  the Prime Minister/Premier. 
B)  the Treasurer/Minister for Finance. 
C)  public accounts committees. 
D)  specific legislative requirements.

Question 7

Governmental auditing often extends beyond examinations leading to the expression of an opinion on the fairness of financial presentation and includes audits of efficiency and effectiveness, and:

Accepted Answer

A)  internal control. 
B)  evaluation. 
C)  accuracy. 
D)  compliance. 
A)  internal control. 
B)  evaluation. 
C)  accuracy. 
D)  compliance.

Question 8

Which of the following can be considered an example of a performance indicator for effectiveness?

Accepted Answer

A)  A reduction in the number and severity of injuries, resulting from a road safety program. 
B)  The number of patients treated in a health clinic. 
C)  A decline in caseloads for social workers. 
D)  The costs of a job training program for long-term unemployed, per person placed in permanent employment. 
A)  A reduction in the number and severity of injuries, resulting from a road safety program. 
B)  The number of patients treated in a health clinic. 
C)  A decline in caseloads for social workers. 
D)  The costs of a job training program for long-term unemployed, per person placed in permanent employment.

Question 9

Public sector entities are required to prepare financial reports based on:

Accepted Answer

A)  cash accounting. 
B)  accrual accounting. 
C)  fund accounting. 
D)  All of the given answers are correct. 
A)  cash accounting. 
B)  accrual accounting. 
C)  fund accounting. 
D)  All of the given answers are correct.

Question 10

Governmental auditing includes:

Accepted Answer

A)  financial report auditing. 
B)  performance auditing. 
C)  compliance auditing. 
D)  All of the given answers are correct. 
A)  financial report auditing. 
B)  performance auditing. 
C)  compliance auditing. 
D)  All of the given answers are correct.

Question 11

In reporting performance audit findings, why does an auditor evaluate evidence against criteria?

Accepted Answer

A)  To ensure reasonable criteria have been established. 
B)  To develop conclusions relative to the audit objectives. 
C)  To develop the audit scope. 
D)  To determine risk. 
A)  To ensure reasonable criteria have been established. 
B)  To develop conclusions relative to the audit objectives. 
C)  To develop the audit scope. 
D)  To determine risk.

Question 12

Which of the following examples is a compliance audit in relation to a government department?

Accepted Answer

A)  Reporting to the minister on the tendering process for the construction of the department's new office block. 
B)  Reporting on the department's financial report to be presented to Parliament. 
C)  Reporting to the minister as to whether the department has met the objectives set out in its mission statement. 
D)  Reporting to the minister as to whether members of the department have followed the government travel guidelines. 
A)  Reporting to the minister on the tendering process for the construction of the department's new office block. 
B)  Reporting on the department's financial report to be presented to Parliament. 
C)  Reporting to the minister as to whether the department has met the objectives set out in its mission statement. 
D)  Reporting to the minister as to whether members of the department have followed the government travel guidelines.

Question 13

The proposed annual expenditures of the Commonwealth Government are authorised by:

Accepted Answer

A)  the Auditor-General. 
B)  the Treasurer. 
C)  the Department of Finance. 
D)  the Parliament. 
A)  the Auditor-General. 
B)  the Treasurer. 
C)  the Department of Finance. 
D)  the Parliament.

Question 14

Which of the following is an example of improved effectiveness?

Accepted Answer

A)  Greater outputs from the same inputs. 
B)  Rationalisation of facilities. 
C)  Introduction of charges where none previously existed. 
D)  An increase in the percentage of streets rated as having a satisfactory level of cleanliness and appearance in terms of a city's street maintenance program. 
A)  Greater outputs from the same inputs. 
B)  Rationalisation of facilities. 
C)  Introduction of charges where none previously existed. 
D)  An increase in the percentage of streets rated as having a satisfactory level of cleanliness and appearance in terms of a city's street maintenance program.

Question 15

What problem arises if the relationship between cause and effect is not determined in a performance audit?

Accepted Answer

A)  The impact on the financial report cannot be determined. 
B)  The audit cannot proceed. 
C)  The criteria cannot be established. 
D)  A recommendation cannot be made to address the cause of the problem. 
A)  The impact on the financial report cannot be determined. 
B)  The audit cannot proceed. 
C)  The criteria cannot be established. 
D)  A recommendation cannot be made to address the cause of the problem.

Question 16

Why should the public sector performance auditor be concerned with avoiding commenting on government policy?

Accepted Answer

A)  Any comment will undermine the public's confidence in the government of the day. 
B)  Government policy does not affect the performance of the entity. 
C)  The merits of government policy are matters for political debate and for decision by the executive government. 
D)  A risk may arise in that the official opposition may use the audit report to criticise the government. 
A)  Any comment will undermine the public's confidence in the government of the day. 
B)  Government policy does not affect the performance of the entity. 
C)  The merits of government policy are matters for political debate and for decision by the executive government. 
D)  A risk may arise in that the official opposition may use the audit report to criticise the government.

Question 17

Why is it important to establish performance audit criteria?

Accepted Answer

A)  They are a basis for communication with management. 
B)  They indicate the scope of the performance audit. 
C)  They are a basis for developing audit programs and questionnaires. 
D)  All of the given answers are correct. 
A)  They are a basis for communication with management. 
B)  They indicate the scope of the performance audit. 
C)  They are a basis for developing audit programs and questionnaires. 
D)  All of the given answers are correct.

Question 18

Which of the following statements best describes the term 'efficiency'?

Accepted Answer

A)  A reduction in costs through better contracting. 
B)  Clarifying objectives and policies. 
C)  Greater outputs from the inputs. 
D)  Rationalisation of facilities. 
A)  A reduction in costs through better contracting. 
B)  Clarifying objectives and policies. 
C)  Greater outputs from the inputs. 
D)  Rationalisation of facilities.

Question 19

The Auditor-General is appointed by:

Accepted Answer

A)  the Governor-General. 
B)  the Parliament. 
C)  the Public Service Board. 
D)  the Minister of Finance 
A)  the Governor-General. 
B)  the Parliament. 
C)  the Public Service Board. 
D)  the Minister of Finance

Question 20

A determination of cost savings is most likely to be an objective of a:

Accepted Answer

A)  regularity audit. 
B)  compliance audit. 
C)  performance audit. 
D)  financial audit. 
A)  regularity audit. 
B)  compliance audit. 
C)  performance audit. 
D)  financial audit.

A typical objective of a performance audit is for the auditor to:

Government activities may be carried out through:

It is not a primary purpose of a performance audit to provide:

Which of the following statements best describes the term 'outcomes' in a performance audit?

What is the main concern of performance auditing?

Peer reviews of public sector audit offices are normally directed by:

Governmental auditing often extends beyond examinations leading to the expression of an opinion on the fairness of financial presentation and includes audits of efficiency and effectiveness, and:

Which of the following can be considered an example of a performance indicator for effectiveness?

Public sector entities are required to prepare financial reports based on:

Governmental auditing includes:

In reporting performance audit findings, why does an auditor evaluate evidence against criteria?

Which of the following examples is a compliance audit in relation to a government department?

The proposed annual expenditures of the Commonwealth Government are authorised by:

Which of the following is an example of improved effectiveness?

What problem arises if the relationship between cause and effect is not determined in a performance audit?

Why should the public sector performance auditor be concerned with avoiding commenting on government policy?

Why is it important to establish performance audit criteria?

Which of the following statements best describes the term 'efficiency'?

The Auditor-General is appointed by:

A determination of cost savings is most likely to be an objective of a:

Assurance and Auditing: An Overview

The Structure of the Profession

Ethics, Independence and Corporate Governance

The Legal Liability of Auditors Part Two: Planning and Risk

Overview of Elements of the Financial Report Audit Process

Planning, Understanding the Entity and Evaluating Business Risk

Assessing Specific Business Risk

Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

Tests of Controls

Substantive Tests of Transactions and Balances

Audit Sampling Part Four: Completion and Communication

Completion and Review

The Auditors Reporting Obligations Part Five: Other Assurance Services

Internal Auditing

Other Assurance Services and Advanced Topics

Filters

Exam 15: Auditing and Assurance Services in the Public Sector

A typical objective of a performance audit is for the auditor to:

Government activities may be carried out through:

It is not a primary purpose of a performance audit to provide:

Which of the following statements best describes the term 'outcomes' in a performance audit?

What is the main concern of performance auditing?

Peer reviews of public sector audit offices are normally directed by:

Governmental auditing often extends beyond examinations leading to the expression of an opinion on the fairness of financial presentation and includes audits of efficiency and effectiveness, and:

Which of the following can be considered an example of a performance indicator for effectiveness?

Public sector entities are required to prepare financial reports based on:

Governmental auditing includes:

In reporting performance audit findings, why does an auditor evaluate evidence against criteria?

Which of the following examples is a compliance audit in relation to a government department?

The proposed annual expenditures of the Commonwealth Government are authorised by:

Which of the following is an example of improved effectiveness?

What problem arises if the relationship between cause and effect is not determined in a performance audit?

Why should the public sector performance auditor be concerned with avoiding commenting on government policy?

Why is it important to establish performance audit criteria?

Which of the following statements best describes the term 'efficiency'?

The Auditor-General is appointed by:

A determination of cost savings is most likely to be an objective of a:

Assurance and Auditing: An Overview

The Structure of the Profession

Ethics, Independence and Corporate Governance

The Legal Liability of Auditors Part Two: Planning and Risk

Overview of Elements of the Financial Report Audit Process

Planning, Understanding the Entity and Evaluating Business Risk

Assessing Specific Business Risk

Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

Tests of Controls

Substantive Tests of Transactions and Balances

Audit Sampling Part Four: Completion and Communication

Completion and Review

The Auditors Reporting Obligations Part Five: Other Assurance Services

Internal Auditing

Other Assurance Services and Advanced Topics

Filters