IIA CPEA Exam Practice Test Instant Access

Question 1

In assessing whether to accept a client for an audit engagement, a, auditor should consider the:

AAdequacy of the preplanned audit program

BAbility to establish consistency in application of accounting principles between years

CApparent scope limitation

DIntegrity of management

Answer : A

Question 2

Which one of the following meetings is considered as a 'meeting of directors or management?

AGeneral meeting

BExtra ordinary general meeting

CBoard meeting

DManagement meeting

Answer : C

Question 3

Analytical procedures used in planning an audit should focus on identifying which one of the followings?

AAreas that may represent specific risks relevant to the audit

BMaterial weaknesses in the internal control structure

CThe predictability of financial data form individual transactions

DThe various assertions that are embodied in the financial report

Answer : C

Question 4

Which one of the following is the source document for staff salaries?

AApproved payrolls

BVouchers

CAccounting statements

DCash memos

Answer : A

Question 5

While considering internal control system of an entity, the auditor is basically concerned that the system provides reasonable assurance about which one of the following?

AThat the management cannot override the system

BOperational efficiency has been achieved according to management plans

CErrors have been prevented or detected

DControls have not been circumvented by collusion

Answer : C

Question 6

Corporations have already begun to change the way they operate, anticipating an increasingly challenging future. Some interesting developments are:

AAppointment of environmental experts to corporate boards

BMulti-national workforce

CThink tanks

DBenchmarking studies, Third-party program evaluations and certifications and Voluntary public reporting

Answer : A, D

Question 7

The European Community Eco-Management and Audit Scheme (EMAS) participation requires:

AAn environmental policy must be adopted consistent with requirements listed in the EMAS regulations

BThe company should conduct an initial site review

CAn environmental statement must be prepared monthly

DThe environmental statement must be verified by an independent third party that was not involved in the audit

Answer : A, D

IIA CPEA Certified Professional Environmental Auditor Exam Practice Test