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IIA-CGAP Questions and Answers

Question # 1

A __________________________ letter is usually developed with either a qualified or unqualified opinion. Obviously a qualified opinion will warrant significant remedial action by the audit organization:

A.

Opinion letter

B.

Offer letter

C.

Informal opinion letter

D.

Formal opinion letter

Question # 2

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. All of the following given below are some of the advantages of direct delivery of services by government employees EXCEPT:

A.

Existing government employees might be expected to have a more thorough understanding of program objectives than a private-sector contractor hired for a one-year contract.

B.

Often viewed as a more economical approach (for example, a new program is assigned to existing staff and indirect costs are not included in the analysis).

C.

Increased lead time for deployment of new programs as internal staff resources are allocated among current and proposed programs.

D.

Existing government employees might be expected to have increased knowledge of government regulations and requirements and the environment surrounding the program.

Question # 3

The major considerations in project management can be modified to fit specific projects, but generally include the following:

A.

Clarify understanding about the audit mandate

B.

Develop budgets and Assign staff to the project

C.

Develop and assign specific tasks

D.

All of the above.

Question # 4

Staff must be properly guided and supervised throughout the audit process. Supervision is the process by which the objectives of quality control and individual responsibility are balanced. All of the following given below are the Goals of supervision please choose the correct option:

A.

Keep staff motivated by giving them a level of responsibility commensurate with their experience and performance.

B.

Provide sufficient oversight of work to provide reasonable assurance that the work meets quality standards.

C.

All of the above.

D.

None of the above.

Question # 5

Capital budgeting is often based on the issuance of capital debt. Capital debt (based on GASB 11) includes all of the following debt that are issued EXCEPT:

A.

Finance the acquisition or construction of fixed assets reported on the balance sheet.

B.

No Refund existing capital debt.

C.

Finance capital grants to other governments.

D.

Finance certain nonrecurring projects or activities that have a long-term economic benefit.

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