Question 1

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?

Options :

A : The head of the audit unit

B : A director or chief

C : The head of the department

D : Audit staff

Answer: A

Question 2

The budget authority is generally a “ceiling” provided by law for obligations and expenditures. Some common forms of budget authority include all of the following EXCEPT:

Options :

A : Appropriation — this is the most common form of budget authority, which permits agencies to incur obligations and expend funds.

B : Legal restrictions on an organization

C : Public debt authority — funds derived from the sale public debt securities of the federal government.

D : Contract authority — statutory authority under which obligations may be entered into prior to receiving an appropriation

Answer: B

Question 3

Application controls are designed to prevent, detect, and correct errors and irregularities as transactions flow through the application. Application controls are classified into all of the following categories EXCEPT:

Options :

A : Output controls

B : Input controls

C : Internal controls

D : Processing controls

Answer: C

Question 4

Criteria to use for selection of performance measures and data collection procedures include all of the following EXCEPT:

Options :

A : Appropriateness and Validity

B : Uniqueness, Completeness and Comprehensibility

C : Planning, Controlling and Organizing

D : Control ability and Timeliness of Feedback

Answer: C

Question 5

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

Options :

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

Answer: C

Confidently Practice Online with Free IIA-CGAP-US Exam Cram

Buying Options: