IIA iia-cgap practice test

Certified Government Auditing Professional Exam

Last exam update: Dec 14 ,2024
Page 1 out of 22. Viewing questions 1-15 out of 327

Question 1

Following are examples of the intersection of public information with privacy include please choose
the correct option:

  • A. Private-sector contractors proposals or unit cost information (proprietary information related to a business that was disclosed in a proposal to provide services to a unit of government).
  • B. A & C only.
  • C. Income levels of clients to determine eligibility for a service (for example, free an reduced price lunch programs).
  • D. Mental health data, medical records, social services provided to clients (personal information retained for specific government programs).
  • E. All of the above.
Answer:

E

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Question 2

Following are the disadvantages of privatization listed below please choose the correct option:

  • A. More responsiveness to service consumers and more metrics to measure performance as profit incentives are introduced.
  • B. Increased potential for corruption and fraud as services are outsourced to multiple firms.
  • C. More flexibility to obtain services, since multiple contractors may exist.
  • D. Avoidance of expensive start-up costs by contracting governments.
Answer:

B

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Question 3

Following are the advantages of privatization listed below please choose the correct option:

  • A. Increased potential for corruption and fraud as services are outsourced to multiple firms.
  • B. Reduced control over services as services are outsourced to multiple firms.
  • C. Limited numbers of potential vendors (increased costs).
  • D. More responsiveness to service consumers and more metrics to measure performance as profit incentives are introduced.
Answer:

D

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Question 4

Privatization can be defined as the process of returning to the private sector property or functions
previously owned or performed by government. All of the Following are basic forms of government
privatization EXCEPT:

  • A. Sale of government assets (such as selling public housing units to tenants).
  • B. Private financing of public facilities (examples are toll highways in Virginia and California).
  • C. Voucher privatization - shares of ownership are distributed to all citizens, usually for free or at a very low price.
  • D. Private provision of services (such as trash collection, prisons, or auditing).
Answer:

C

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Question 5

________can be defined as Contractual agreements can end either naturally (i.e., by reaching the
termination date or delivery of the final product) or by other means. Where as ______can be define
as the contractor shall maintain adequate accounting records and supporting documents to verify
the amounts, recipients, and uses of all payments and funds received in conjunction with the
contract for a designated period of time:

  • A. Anti-kickback or non-bribery clause, Right to audit
  • B. Conflict of interest disclosure, Anti-kickback or non-bribery clause
  • C. Contract termination, Right to audit
  • D. Right to audit, Property rights of the end product
Answer:

C

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Question 6

Examples of standards language in contracts cover the following areas please choose the correct
option:

  • A. Conflict of interest disclosure.
  • B. Anti-kickback or non-bribery clause.
  • C. Property rights of the end product.
  • D. B & C only.
  • E. All of the above.
Answer:

E

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Question 7

Some forms or documents that may assist in the contracting process are given below please choose
the correct option:

  • A. Procurement request or authorization — prepared by internal managers.
  • B. Proposal — submitted by interested, prospective contractors.
  • C. Contract document — executed only by authorized internal procurement personnel.
  • D. A & B only.
  • E. All of the above.
Answer:

E

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Question 8

Government entities generally have the authority and responsibility to issue and require adherence
to their policies and regulations relating to contracts. Accounting and control considerations for
contracts include the following given below please choose the correct option:

  • A. Development and approval of a pre-award form to ensure unobligated funds equal to the estimated amount of the contract.
  • B. Specifications or statement of work describing goods and services to be obtained (including quality standards).
  • C. Settlement of any advances of money and inventories of property in a manner consistent with agency policy or contract conditions.
  • D. All of the above.
  • E. None of the above.
Answer:

D

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Question 9

___________ is a contract for a supply that does not procure or specify a firm quantity of supplies
(other than a minimum or maximum quantity), and that provides for the issuance of orders for the
delivery of supplies during the period of the contract. Where as _________ is a contract that may be
used to acquire supplies and/or services when the exact times and/or exact quantities of future
deliveries are not known at the time of contract award.

  • A. Delivery order, indefinite quantity
  • B. Cost-plus-fixed-fee is, Cost-plus-incentive-fee
  • C. Cost-reimbursement, Cost sharing
  • D. Cost-plus-incentive-fee, Cost sharing
Answer:

A

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Question 10

_________ 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:

  • 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
Answer:

C

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Question 11

________ a cost-reimbursement contract that provides for payment to the contractor of a negotiated
fee that is fixed at the inception of the contract. Where as ________ is a costreimbursement contract
that provides for the initially negotiated fee to be adjusted later by a formula based on the
relationship of total allowable costs to total target costs:

  • 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
Answer:

B

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Question 12

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 disadvantages of direct delivery of services by government employees
EXCEPT:

  • A. Increased lead time for deployment of new programs as internal staff resources are allocated among current and proposed programs.
  • B. Indirect (“hidden”) costs to program (pension, benefits, training, etc.).
  • C. Direct (“hidden”) costs to program (pension, benefits, training, etc.).
  • D. Decreased flexibility to make changes/reductions (due to constraints on hiring, layoffs, and position reclassification).
Answer:

C

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Question 13

Contracts are written agreements (in most cases) that obligate the government to expenditure of
money upon delivery of goods or performance of services. Following are various contract types
available to ensure cost-effective delivery of services please choose the correct option:

  • A. Fixed-price
  • B. Firm fixed-price
  • C. Cost-plus-award-fee
  • D. A & C only.
  • E. All of above.
Answer:

E

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Question 14

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

  • A. Use of resources for monitoring compliance with grant terms.
  • B. Decrease in control over specific program activities.
  • C. Limitations on consistency of program implementation and leadership.
  • D. All of the above.
  • E. None of the above.
Answer:

E

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Question 15

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:

  • 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.
Answer:

D

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