Question 1

A flowchart is a visual representation of how a process works. All of The following are general rules that apply to flowcharting EXCEPT:

Accepted Answer

A)   Connectors should be used to connect breaks in the flowchart (e.g., from one page to another) .
B)   Ask questions in a low-key, professional style.
C)   The exit point for all flowchart symbols should be at the bottom, except for the decision symbol. The decision symbol should have two exit points; these can be on the sides or on the bottom and one side.
D)   Flowcharts generally flow from top to bottom and from left to right. B

Question 2

__________ covers Matters affecting the operations of both the House of Representatives and Senate are usually initiated by means of concurrent resolutions. On approval by both the House of Representatives and Senate, they are signed by the clerk of the House and the secretary of the Senate. Where as _________ covers a matter concerning the operation of either the House of Representatives or Senate alone is initiated by a simple resolution. They are not presented to the president for action.

Accepted Answer

A)   Bill, joint resolution
B)   Joint resolution, bill
C)   Concurrent resolutions, Simple resolutions
D)   Simple resolutions, joint resolution C

Question 3

All of the following is a list of principles for formulating well-stated audit objectives EXCEPT:

Accepted Answer

A)   Phrase objectives either as precisely worded questions or as items to determine (e.g., "To determine whether…") .
B)   Clearly identify the type of performance to be audited and separate objectives if more than one element of performance is to be reviewed.
C)   There is no need to clearly identify the customer.
D)   Review the audit objectives with management or others requesting the audit and Frame objectives that consider a realistic scope and methodology. C

Question 4

The purpose of _________ is to establish the criteria or overall framework for the purposeful, systematic, and balanced steps or actions that the auditor has to follow and they are related to the general____________, which set out the basic requirements for undertaking the tasks covered by the field standards:

Accepted Answer

A)   Control standards, Field standards
B)   Auditing standards, Field standards
C)   Field standards, Control standards
D)   Field standards, Auditing standards

Question 5

Ultimately any system of control is the responsibility of the governing board. The Canadian Institute of Chartered Accountants' (CICA) publication, Guidance for Directors - Governance Processes for Control, describes all of the following control responsibilities for boards given below EXCEPT:

Accepted Answer

A)   Establishing and monitoring the organization's ethical values.
B)   Overseeing external communications.
C)   Establish a common definition of internal control.
D)   Approval and monitoring of mission, vision, and strategy.

Question 6

Managers should develop budgets for time and dollars. Variables to consider when preparing budgets include all of the following EXCEPT:

Accepted Answer

A)   Goals of the project and Availability of data.
B)   Cooperation level of customer management and Projected travel (e.g., whether customer information is centralized or decentralized) .
C)   None of the above.
D)   All of the above.

Question 7

Activity-based costing (ABC) enables managers and auditors to directly link the costs of program resources to the objects produced, whether the objects are products or services. In addition, activity-based costing can be used to obtain cost information to use in the following ways:

Accepted Answer

A)   Fee setting - government organizations often develop fee or payment schedules for units of service.
B)   Making contracting-out decisions - many organizations are attempting to cut costs either by outsourcing various operations or by consolidating services.
C)   All of the above.
D)   None of the above.

Question 8

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 all of the following EXCEPT:

Accepted Answer

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

Question 9

Some of the assistance services auditors may be called on to perform, in addition to conducting audits, include all of the following given below please choose the correct option:

Accepted Answer

A)   Consulting
B)   Control Self-assessment
C)   Training
D)   All of the above.

Question 10

The form and content of written policies and procedures should be appropriate to the size and structure of the auditing department and the complexity of its work. Formal administrative and technical audit manuals help employees to consistently comply with established performance standards. Then who is responsible for developing and maintaining written policies and procedures to guide audit staff?

Accepted Answer

A)   The head of the audit unit
B)   A director or chief
C)   The head of the department
D)   Audit staff

Question 11

Which services involve the internal auditor's objective assessment of evidence to provide an independent opinion or conclusions regarding a process, system, or other subject matter?

Accepted Answer

A)   Accounting services
B)   Auditing services
C)   Assurance services
D)   Insurance services

Question 12

All of the following are the factors on which audit work schedules may be based on EXCEPT:

Accepted Answer

A)   Audit work schedules (activities to be audited, time frames for audit, resource estimates) .
B)   The length of time since the area was last audited and the extend and type of findings in the last audit.
C)   Audits prioritized based on assessment of the degree of risk of potential loss (such as potential loss of dollars, lives, or of public trust)  associated with the audit area.
D)   The occurrence of major recent changes in operations, programs, systems, or controls and the availability of audit staff resources.

Question 13

________can be defined as Contractual agreements can end either naturally (i.e., by reaching the termination date or delivery of the final product) or by other means. Where as ______can be define as the contractor shall maintain adequate accounting records and supporting documents to verify the amounts, recipients, and uses of all payments and funds received in conjunction with the contract for a designated period of time:

Accepted Answer

A)   Anti-kickback or non-bribery clause, right to audit
B)   Conflict of interest disclosure, anti-kickback or non-bribery clause
C)   Contract termination, right to audit
D)   Right to audit, property rights of the end product

Question 14

The _______________ mission is to serve the public interest, strengthen the global accountancy profession, and contribute to the development of strong international economies by establishing and promoting adherence to high-quality professional standards, furthering the international convergence of such standards, and speaking out on public interest issues where the profession's expertise is most relevant:

Accepted Answer

A)   International Standards on Auditing (IS
A)  .
B)   International Organization of Supreme Audit Institutions (INTOSAI)  Standards.
C)   The International Federation of Accountants (IFA
C)  
D)   International Standards for the Professional Practice of Internal Auditing (ISPPI
A)  .

Question 15

Which of the following factors may influence the auditors assessment of control risk please choose the correct option:

Accepted Answer

A)   Customer policy regarding such matters as acceptable operating practices and codes of conduct.
B)   Management's awareness or lack of awareness of applicable laws and regulations
C)   Assignment of responsibility and delegation of authority to deal with such matters as organizational goals and objectives, operating functions, and regulatory requirements.
D)   All of the above

Question 16

The _________ address the attributes of organizations and individuals performing internal audit services. The ___________ describe the nature of internal audit services and provide quality criteria against which the performance of these services can be measured:

Accepted Answer

A)   Performance Standards, Control standards
B)   Control standards, Performance standards
C)   Performance standards, Attribute standards
D)   Attribute Standards, Performance Standards

Question 17

A budget is a financial plan that serves as a guide to control and oversee future activities. The budgeting cycle incorporates all of the following components EXCEPT:

Accepted Answer

A)   Executive preparation and execution
B)   Legislative consideration
C)   Leading and controlling
D)   Audit and evaluation

Question 18

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:

Accepted Answer

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.

Question 19

Who should approve the charter for government entities?

Accepted Answer

A)   The governing body (e.g., legislature, city council, or board) 
B)   Government institutions
C)   A direct or chief
D)   The head of the unit or agency

Question 20

All of the following are the objectives of an audit EXCEPT:

Accepted Answer

A)   Compliance with legislative or regulatory requirements and related authorities.
B)   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.
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 and identified financial reporting framework.
D)   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.

Exam 2: Certified Government Auditing Professional