Question 1

The steps in developing an activity-based costing system are as follows EXCEPT:

Accepted Answer

Controlling the costs is not a step in developing an activity-based costing system; it is more about managing costs after they have been identified and allocated.

Question 2

Following are the field standards that are applicable to all types of audits EXCEPT:

Accepted Answer

The controller's role in evaluating internal control is not a field standard applicable to all types of audits; it is more specific to financial audits.

Question 3

All of the following are the examples of Activities (and activity drivers) EXCEPT:

Accepted Answer

Facilities cost per square foot is not an activity or activity driver; it is more related to overhead or indirect costs rather than a direct activity related to processing applications.

Question 4

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

Accepted Answer

Audit work schedules are based on factors like risk assessment, past audit findings, and changes in operations, not on the scheduling details themselves.

Question 5

Which of The following two approaches can be used to evaluate management controls in performance audits?

Accepted Answer

The answer of Which of The following two approaches can...

Question 6

Although some Practice Advisories may be applicable to all internal auditors, others may be developed to meet the needs of a _______, a __________, or _________, including guidance on topics such as environmental issues, control self-assessment, information technology, government auditing, and guidance issued by other standard setting bodies and adopted by ______________.

Accepted Answer

The correct sequence is "Specific industry, Specific audit specialty, Specific geographic area, committees of The IIA" as it logically categorizes the areas where specific Practice Advisories may be developed.

Question 7

__________focus on the results of the program in order to determine the programs effect. The net effect of a program can be analyzed by studying its outputs and outcomes in relation to the programs objectives.

Accepted Answer

Summative program evaluations focus on assessing the outcomes and impacts of a program to determine its overall effectiveness and success in achieving its objectives.

Question 8

All of The following are questions auditors may ask when testing controls of safeguards over assets and records please choose the correct option:

Accepted Answer

The answer of All of The following are questions auditors...

Question 9

The purpose of an __________is to have an independent assessment of the quality of the audit units work. Also __________ focus on assessing the extent the audit organization followed applicable standards in conducting its work:

Accepted Answer

External reviews are conducted by independent parties to assess the quality of an audit unit's work and ensure compliance with applicable standards.

Question 10

An assessment of management controls can influence all of the following elements of the audit program EXCEPT:

Accepted Answer

The answer of An assessment of management controls can influence...

Question 11

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

Accepted Answer

All the listed factors can influence the auditor's assessment of control risk as they relate to the organization's internal control environment and management's ability to enforce and monitor compliance with policies and regulations.

Question 12

Beneficiaries are people who may never read the audit report, but whose services are improved because the audit was conducted. All of the following are examples of beneficiaries EXCEPT:

Accepted Answer

The answer of Beneficiaries are people who may never read...

Question 13

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

Attribute Standards address the attributes of organizations and individuals performing internal audit services, while Performance Standards describe the nature of internal audit services and provide quality criteria for measuring performance.

Question 14

The purpose of compliance audits is to test the organizations conformity with some objective standard or criteria. All of the following are attributes that contribute to an effective compliance system EXCEPT:

Accepted Answer

Continuing education and training for staff is not an attribute that contributes to an effective compliance system.

Question 15

______ quantify the amount of resources used or planned for a specific service or program. Where as________report quantities of products or services delivered by a program or agency.

Accepted Answer

Input measures quantify the resources used or planned for a service or program, while output measures report the quantities of products or services delivered by a program or agency.

Question 16

____________ is an independent, objective assurance and consulting activity designed to add value and improve organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Accepted Answer

Internal auditing is designed to add value and improve an organization's operations by evaluating and improving the effectiveness of risk management, control, and governance processes.

Question 17

All of the following are the components of The Professional Practices Framework which was approved by The IIAs Board of Directors in June 1999 EXCEPT:

Accepted Answer

Mandatory Guidance is not a component of The Professional Practices Framework.

Question 18

The audit function within government provides all of the following benefits EXCEPT:

Accepted Answer

The audit function does not ensure the prompt implementation of audit recommendations; it only provides recommendations, and their implementation depends on the management's actions.

Question 19

The following are guidelines for evaluating performance reports EXCEPT:

Accepted Answer

The guideline in option A is not about evaluating performance reports but rather about improving performance, which is not directly related to the evaluation of the reports themselves.

Question 20

_______enables managers and auditors to directly link the costs of program resources to the objects produced, whether the objects are products or services. The link is established through the costing of the activities performed in producing the object.

Accepted Answer

Activity-based costing (ABC) allows for the direct linking of costs to products or services by assigning costs to activities based on their use of resources.

Exam 2: Certified Government Auditing Professional