Question 1

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:

Accepted Answer

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 2

All of The following are the areas that should be considered when identifying specific performance to measure EXCEPT:

Accepted Answer

A)  Determine if recommendations for improvement or change are warranted. 
B)  Identify stakeholder needs. 
C)  Assess performance through bench marking or best practice reviews. 
D)  Do not Identify processes within the program.

Question 3

All of the following are the general steps to follow when testing a hypothesis EXCEPT:

Accepted Answer

A)  State the null and alternative hypotheses. 
B)  Establish the criterion for rejecting or accepting the null hypothesis. 
C)  Analyze the data. Data analysis involves collecting sampled items, estimating the parameter, and calculating the value of the sample mean. 
D)  Accept the null hypothesis only.

Question 4

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

Accepted Answer

A)  The questions should be as simple, direct, and unambiguous as possible. 
B)  Any unique or seldom used terms should be clearly defined. 
C)  Response 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). 
D)  Avoid asking leading questions such as, "Do you believe that minority quotas are an unfair means of allocating political favors to specific voter groups?"

Question 5

An __________ serves as the audit departments statement of purpose, authority and responsibility. Audit charters should be ___________. These are usually brief documents written in general terms. Applicable governing statutes often dictate the specific elements to include in the charter for governmental entities:

Accepted Answer

A)  Audit report, not in writing 
B)  Financial report, not in writing 
C)  Audit charter, in writing 
D)  Financial report, in writing

Question 6

Control activities are policies and procedures used by the organization to address identified risks. All of the following are some examples of control activities EXCEPT:

Accepted Answer

A)  Internal accounting controls (e.g., segregation of duties, monitoring, reconciliation). 
B)  Management controls (e.g., the plan, methods, and procedures adopted by management to ensure its goals are met, including systems for measuring, reporting, and monitoring program performance). 
C)  Detective controls are designed to identify and correct undesirable events that have occurred. 
D)  Information technology controls (e.g., access security controls, data center operation controls).

Question 7

All of the following are levels of ethics, each of which has its own sets of responsibilities EXCEPT:

Accepted Answer

A)  Organizational ethics - the environment or culture of an organization and formal and informal rules of conduct. These can also include specific laws and regulations. 
B)  Personal morality - the basic sense of right and wrong is a function of social mores, parental influence, religious background, and personal experiences. 
C)  Corporate social responsibility or CSR: an umbrella term under which the ethical rights and duties existing between companies and society is debated. 
D)  Professional ethics - professional norms and rules that govern a profession. Some professions, such as auditing, have professional codes of conducts (such as the IIA's Code of Ethics).

Question 8

Grants are used by governments to operate programs and provide services. Following are some of the some of the disadvantages of using grants please choose the correct option:

Accepted Answer

A)  Increased control over program design and types of services, since specific requirements can be included in grant agreements. 
B)  Increased control over expenditure categories, since only specific expenditures may be permitted in the grant agreement. 
C)  Ability to place limits on costs (such as overhead costs) that will be reimbursed. 
D)  None of the above. 
E)  All of the above.

Question 9

The term _______refers to methods designed to describe or summarize the characteristics of a data set. The term _______refers to methods designed to allow inferences or estimates to be made about the characteristics of a data set.

Accepted Answer

A)  Inferential statistics, descriptive statistics 
B)  Standard deviation, mean 
C)  Descriptive statistics, inferential statistics 
D)  Median, arithmetic mean

Question 10

Techniques involved in conducting formative evaluations include all of the following EXCEPT:

Accepted Answer

A)  controlling and planning 
B)  Program modeling and Equipment trials 
C)  Direct observation by evaluators and Expert judgment 
D)  Focus groups and Ethnographic analysis

Question 11

During the _______, the data are aggregated and formatted in a manner to facilitate management oversight of key measures. Where as the_______ involves management decision-making based upon the program evaluation.

Accepted Answer

A)  plan" phase, "do" phase, 
B)  "do" phase, plan" phase, 
C)  "check" phase, "act" phase 
D)  "act" phase, "check" phase

Question 12

Properly conducted samples can be used to make inferences or generalizations about the entire population. The following four principles should guide sampling design:

Accepted Answer

A)  A sampling technique should be used in which the probability for selecting any unit in the population can be calculated. 
B)  A sample should be drawn that is of appropriate size relative to the size of the population to which generalization is desired. And always test samples to ensure that they are truly representative of the population to which the evaluators hope to generalize on variables of critical interest. 
C)  All of the above. 
D)  None of the above.

Question 13

Following are the arenas of services into which a government might enter please choose the correct option:

Accepted Answer

A)  Architect-engineer services 
B)  Building service contract 
C)  Facilities contract 
D)  All of the above. 
E)  None of the above.

Question 14

_________ is a contract that provides for payment of allowable incurred costs to the extent prescribed in the contract. Where as ___________ a cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs:

Accepted Answer

A)  Cost sharing, cost-plus-incentive-fee 
B)  Cost-plus-fixed-fee is, cost-plus-incentive-fee 
C)  Cost-reimbursement, cost sharing 
D)  Cost-plus-incentive-fee, cost sharing

Question 15

Beyond blatant illegal activities there are more subtle situations that can taint the public's perception of government. All of the following are the areas of ethical concerns EXCEPT:

Accepted Answer

A)  Disclosure - if any benefit from an activity is to be accrued by an employee, the relationship and benefit must be disclosed to management prior to the transaction. 
B)  Organizational ethics - the environment or culture of an organization and formal and informal rules of conduct. These can also include specific laws and regulations. 
C)  Gratuities and kickbacks - a payment or inducement to promote a specific transaction or procurement activity. 
D)  Conflict of interest - where an employee or family member has a financial interest in procurement activity or government transaction.

Question 16

_________ covers matters affecting the operations of both the House of Representatives and Senate are usually initiated by means of concurrent resolutions. Where as _________ is a matter concerning the operation of either the House of Representatives or Senate alone is initiated by a simple resolution. They are not presented to the president for action.

Accepted Answer

A)  Bill, joint resolution 
B)  Joint resolution, bill 
C)  Concurrent resolutions, Simple resolutions 
D)  Simple resolutions, joint resolution

Exam 2: Certified Government Auditing Professional