IIA-CGAP Exam Practice Test Instant Access

Question 1

A ________ is a contract or contractual action entered into by a prime contractor or subcontractor for the purpose of obtaining supplies, materials, equipment, or services of any kind under a prime contract. Where as in ______________ multiple awards are given for certain contracts to more than one responsible bid. Generally, the contracts are similar in conditions and amounts.

Asubcontract, Multi-award contracts

BMulti-award contracts, subcontract

CBuilding service contract, Facilities contract

DProfessional and consultant services, Transportation term contracts

Answer : A

Question 2

_______ can be defined as Bids shall be evaluated without discussions. Evaluations should be fairly apparent since price and price-related factors are the prevalent criteria. Where as________ can be defined as bidders must submit sealed bids to be opened at the time and place stated in the solicitation for the public opening of bids:

APublicizing the invitation for bids, Preparation of invitations for bids.

BEvaluation of bids, Submission of bids

CPreparation of invitations for bids, Submission of bids

DAll of the above.

Answer : B

Question 3

_________ are a contracting method employing competitive undisclosed bids, public bid opening, and awards contracts when:

ASealed bids

BOpen bids

CNone of the above.

DAll of the above.

Answer : D

Question 4

The final investigative report serves all of the following major purposes please choose the correct option:

AManagement overview or a brief summary of the case and details of the people involved and recommended actions.

BTo provide a format for recording the essential details of the integrity violation.

CAll of the above.

DTo recommend improved management and security policies.

Answer : B, D

Question 5

Auditors must master a variety of techniques for gathering information. All of the techniques, which involve both manual and electronic means, are described below EXCEPT:

APlanning and controlling.

BReviewing management reports

CDirect observation --- Auditors can obtain valuable information and evidence by directly observing the customer's operations and work processes.

DInterviews --- it is important to meet with personnel involved in the processes being audited to discuss key issues.

Answer : A

Question 6

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. There are numerous fixed and variable costs associated with this approach. All of the following are types of costs EXCEPT:

APersonnel compensation (salary, retirement, insurance, accident compensation, etc.).

BVariable cost.

CAdministrative costs (travel, training, employee relations, etc.).

DFacility costs (workplace, equipment, office supplies, etc.).

Answer : B

Question 7

Activity-based costing (ABC) enables managers and auditors to directly link the costs of program resources to the objects produced, whether the objects are products or services. In addition, activity based costing can be used to obtain cost information to use in the following ways:

AFee setting --- Government organizations often develop fee or payment schedules for units of service.

BMaking contracting-out decisions --- many organizations are attempting to cut costs either by outsourcing various operations or by consolidating services.

CAll of the above.

DNone of the above.

Answer : C

IIA Certified Government Auditing Professional CGAP Exam Practice Test