Question 1

Integrity violations can have an effect on an organization’s performance and reports of performance, as well as on the financial statements. Specific categories of integrity violations include all of the following given below please choose the correct option:

Options :

A : Abuse is distinct from illegal acts and noncompliance. Abuse occurs when conduct falls short of societal expectations for prudent behavior. Because determining abuse is subjective, auditors are not expected to provide reasonable assurance of detecting it.

B : Noncompliance includes illegal acts, as well as violations of provisions of contract or grant agreements.

C : Fraud is a type of illegal act that involves obtaining something of value through willful misrepresentation

D : All of the above.

Answer: D

Question 2

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

Options :

A : Is confidential or sensitive information kept separate from other records?

B : Does management provide a favorable control environment in the organization?

C : Does adequate physical security exist over assets and records? Are storerooms locked? Are equipment and inventories properly recorded? Are there adequate environmental controls over assets (e.g., appropriate temperature)?

D : Only A & C

Answer: D

Question 3

The risk analysis process involves all of the following given below EXCEPT:

Options :

A : Identify auditable activities (programs, accounts, contracts, transactions)

B : Estimate the significance of a risk (magnitude of exposure in dollars or other type of measure, type of threat, duration)

C : Do not Estimate the likelihood that a risk will occur and do not determine how to manage the risks.

D : Estimate the likelihood that a risk will occur and prioritize risks.

Answer: C

Question 4

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

Options :

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 and 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: A

Question 5

Management must continually _________and develop clearly defined control objectives. The ________are the policies and procedures that help ensure that management’s objectives are followed.

Options :

A : Assess diversification risk, planning activities

B : Assess price risk, organizing activities

C : Assess business risk, Control activities

D : Assess credit risk, planning activities

Answer: C

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