Question 1

Who should approve the charter for government entities?

Accepted Answer

The answer of Who should approve the charter for government...

Question 2

The characteristics of ____________ will vary based on the _____ of the audit unit and the nature of its work. Where as The frequency of required quality assurance reviews varies based on the _____ of standards followed.

Accepted Answer

Internal quality control systems vary based on the size of the audit unit and the nature of its work, while the frequency of quality assurance reviews depends on the type of standards followed.

Question 3

All of following areas of financial information should be Considered by the auditors and Auditors must need to be familiar with the customers controls related to financial reporting, safeguarding financial transactions, and compliance with laws and regulations affecting the financial statements if they plan to rely on them in order to reduce substantive testing on the financial statement audit EXCEPT:

Accepted Answer

The responsibility of maintaining accounting records is not directly related to the controls over financial reporting, safeguarding transactions, or compliance, which are the focus areas for auditors when considering reliance on controls to reduce substantive testing.

Question 4

Security administration is responsible for security over the computer facility, including all aspects of physical and data security. Following is a list of Control techniques for security administration. Please choose the correct option.

Accepted Answer

The answer of Security administration is responsible for security over...

Question 5

Measurement criteria are considered relevant when they relate directly to the mission, goals and objectives of the customer. All of the following are some possible examples of measurement criteria that could be used in performance audits EXCEPT:

Accepted Answer

Customer feedback is important but not typically considered a formal measurement criterion in performance audits.

Question 6

The basic elements of effective decision-making are also used as standard guidelines for information technology project management practices. All of the following are the basic steps in decision-making EXCEPT:

Accepted Answer

Monitoring the plan and its effectiveness is part of the implementation and evaluation phase, not a basic step in the decision-making process.

Question 7

_______can be defined as the Equipment, facilities, people, supplies, or services used to produce a product or service. Where as _________is the mechanism that links the costs of resources to the activities that use the resources.

Accepted Answer

Resources are the inputs used to produce goods or services, while a resource driver is the mechanism that links the costs of resources to the activities that use them.

Question 8

__________have been developed to address historical concerns regarding government employment selection and compensation. Abuses of patronage systems in which the victor of political elections hired political allies led to the introduction of merit systems:

Accepted Answer

Government personnel systems were developed to address historical concerns regarding government employment selection and compensation.

Question 9

Financial statements which are fairly presented meet all of the following guide lines EXCEPT:

Accepted Answer

Explanation: Option C relates to the qualifications of staff auditors and the adequacy of audit working papers, which are not directly related to the fair presentation of financial statements.

Question 10

German sociologist Max Weber coined the term bureaucracy. All of the following are positive functions bureaucracies have EXCEPT:

Accepted Answer

Appointments to office based on technical qualifications is a positive function of bureaucracy, not an exception. The question asks for an exception to positive functions, but all options listed are positive functions of bureaucracy.

Question 11

Who control the operation of the computer system and for the efficient use of computer resources which is responsible?

Accepted Answer

System programmers are responsible for controlling the operation of the computer system and ensuring the efficient use of computer resources.

Question 12

_______can be defined as A set of tasks to be costed or analyzed as a group, having both inputs and outputs. Where as _______can be defined as the mechanism that links an object with the frequency and intensity of the performance of an activity for the object.

Accepted Answer

An activity is a set of tasks with inputs and outputs, while an activity driver links an object with the frequency and intensity of an activity's performance.

Question 13

When evaluating whether an organization understands its information needs, auditors should obtain an overview of each computer application that is significant to the financial statements or to achieving the mission and objectives. Information that an auditor should be interested in includes all of the following EXCEPT:

Accepted Answer

Employees pay slips are not relevant to understanding the organization's information needs in the context of evaluating computer applications significant to financial statements or organizational objectives.

Question 14

All of the following are the Aspects of control activities that would help an auditor assess vulnerability EXCEPT:

Accepted Answer

Planning about future events is not directly related to assessing vulnerability in control activities; it is more about strategic foresight rather than evaluating current control weaknesses.

Question 15

The primary purpose of budgeting is to allocate resources among government activities. All of the includes the basic framework for budgeting EXCEPT:

Accepted Answer

The answer of The primary purpose of budgeting is to...

Question 16

All of the following are Methods of measuring performance EXCEPT:

Accepted Answer

Calculations based on current trends are not a direct method of measuring performance; they are more about predicting future performance rather than measuring current or past performance.

Question 17

___________are the framework that management establishes to ensure that it meets its responsibilities in a variety of areas. The objectives _________of are that all transactions should be authorized, accounted for accurately and completely, and in the correct time frame.

Accepted Answer

The answer of ___________are the framework that management establishes to...

Question 18

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

The head of the audit unit is typically responsible for developing and maintaining written policies and procedures to ensure that the audit staff has clear guidance and standards to follow.

Question 19

The goal of the comprehensive approach is to identify potential significant control weaknesses for further review. All of the following are the general steps in the process EXCEPT:

Accepted Answer

The answer of The goal of the comprehensive approach is...

Question 20

All of the following is the terminologies used to refer to audits of performance EXCEPT:

Accepted Answer

Control audit is typically associated with financial audits or internal control assessments, not specifically with performance audits.

Exam 2: Certified Government Auditing Professional