IIA CPEA Exam Questions Instant Access - No Installation Required

Question 1

In assessing whether to accept a client for an audit engagement, a, auditor should consider the:

AAdequacy of the preplanned audit program

BAbility to establish consistency in application of accounting principles between years

CApparent scope limitation

DIntegrity of management

Answer : A

Question 2

The assessment audit when compared to a full scope audit:

AIs almost always an internal audit

BTends to be less in-depth

CIndicates the use of military standards

DIs conducted during the execution phase of the contract

Answer : B

Question 3

Most companies will develop audit guidance manuals to set the framework for the program and to ensure:

AThe consistency of the audit

BThe completeness of all audits

CThe efficiency of all audits

DThe consistency, efficiency, and completeness of all audits

Answer : D

Question 4

An audit program is first and foremost a verification program. It is not meant to replace existing environmental management systems at the corporate (e.g., regulatory updating), division (e.g., capital planning for pollution control expenditures) or plant (e.g., NPDES discharge monitoring) levels. Indeed, the program should be designed to verify that these environmental management systems do, in fact, exist and are in use. However, these benefits of audit can be offset by some real and potential costs including:

ATemporary disruption of plant operations

BIncreased liability where one is unable to respond to audit recommendations involving significant capital expenditures

CThe commitment of committees to run the program

DDecreased ammunition for regulators

Answer : A, B

Question 5

The audit which is a review of any part of an entity's operating procedures and methods is known as:

AFinancial statement audits

BOperational audits

CTechnical Audits

DCompliance audits

Answer : B

Question 6

Section 3 of the General Principles Guideline (14010) requires that ''the audit should only be undertaken if, after consultation with the client, it is the lead auditor's opinion that:''

AThere are adequate resources to support the audit process

BThere is adequate time to support the audit process

CThere are at least 10 members of audit team to support the audit process

DNone of these

Answer : A

Question 7

Contamination of property poses a risk to lenders due to:

AThe potential that a lender may be required to take possession of property to realize on a
debt and become responsible for environmental damage on that property

BThe fact that contaminated land is difficult to sell

CThe fact that the lender will not want to take possession of contaminated land to realize on their security

DAll of the above

Answer : A

IIA Certified Professional Environmental Auditor CPEA Exam Questions