IIA-CGAP Exam Practice Test Instant Access

Question 1

Some specific problems that can occur with secondary data and suggested methods to correct those problems include all of the following EXCEPT:

AIncomplete data

BIrrelevant data

CIncomparable data

DComplete data

Answer : D

Question 2

All of the following are the examples Payroll Red Flags EXCEPT:

ACustomer complaints that they are not receiving notices for nonpayment on account.

BInconsistent overtime hours for a cost center.

COvertime charged during a slack period.

DInconsistent overtime hours for a cost center.

Answer : A

Question 3

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

ALiquidity risk --- Losses resulting because invested dollars cannot be accessed. Losses may occur from penalties for early withdrawal, for example.

BEconomic Risks __One of the most obvious risks of investing is that the economy can go bad.

CDefault risk --- the possibility of a loss resulting from the bankruptcy of an organization in which funds were invested.

DMarket risk --- the possibility of a loss resulting from choosing a relatively poor investment from a large pool of investments.

Answer : B

Question 4

The most common form of service delivery is via government employees. It is this approach that has created bureaucracies at the national, regional, and, in some cases, local level. There are numerous fixed and variable costs associated with this approach. All of the following are types of costs EXCEPT:

APersonnel compensation (salary, retirement, insurance, accident compensation, etc.).

BVariable cost.

CAdministrative costs (travel, training, employee relations, etc.).

DFacility costs (workplace, equipment, office supplies, etc.).

Answer : B

Question 5

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:

AFee setting --- Government organizations often develop fee or payment schedules for units of service.

BMaking contracting-out decisions --- many organizations are attempting to cut costs either by outsourcing various operations or by consolidating services.

CAll of the above.

DNone of the above.

Answer : C

Question 6

Auditors and evaluators develop ________ to obtain information from customers or other stakeholders that is not readily available in the organization's data sources. Where as ______ allow auditors to obtain testimonial evidence regarding a customer's operations, activities, concerns, and initiatives.

Aobservation, interviews

BInterviews, questionnaires

Cquestionnaires, Interviews

Dsurveys, Interviews

Answer : C

Question 7

All of the following are the construction issues while developing a questionnaire EXCEPT:

AThe questions should be as simple, direct, and unambiguous as possible.

BAny unique or seldom used terms should be clearly defined.

CResponse choices should be consistent (avoid use of the most positive choice first in one question, followed by a question where the most negative response choice is first).

DAvoid asking leading questions such as, ''Do you believe that minority quotas are an unfair means of allocating political favors to specific voter groups?''

Answer : D

IIA-CGAP Certified Government Auditing Professional CGAP Exam Practice Test