CDFM Exam Module 3.4 with 100%
Correct Answers
The ________phase of a Government Audit defines the scope and methodology to
provide sufficient competent and relevant evidence to achieve the audit objectives. -
ANSWER-Planning
Which standards apply to Federal Government Audits? - ANSWER-GAGAS, the yellow
book
Who supervisors monitors and initiates audits and investigations relating to DoD
programs and operations? - ANSWER-The DODIG
True or False? An internal audit organization provides absolute assurance that waste,
fraud and abuse will not occur. - ANSWER-FALSE. No audit or review can give
absolute assurance that improprieties did not or will not occur.
How many hours of continuing professional education must an auditor complete
__________ (a) each two years and what is the minimum in any of the years
_________(b)? - ANSWER-80 (a) and 20 (b)
The minimum number of hours of continuing education an auditor must complete each
year and over a two year period is _______ and ______. At least __________ hours
must be directly related to government functions. - ANSWER-20, 80, 24
The audit organization has the responsibility for ensuring that independence is
maintained, applicable standards are followed, they have adequate internal controls in
place, they under go external reviews and that audits are conducted by auditors with the
necessary ________. - ANSWER-skills
Government audits provide essential elements of public accountability and ________. -
ANSWER-Control
Audits that provide reasonable assurance that financial statements are presented fairly
and whether information is presented in proper format are called___________. -
ANSWER-Financial and financially related audits
Auditors ________ should provide sufficient information to enable an experienced
auditor with no prior connection to the audit to come to the same conclusion regarding
conclusions and judgments. - ANSWER-Working Papers
, Audits that provide an objective and systematic examination of evidence for the purpose
of providing an independent assessment of an organization is
called_____________________. - ANSWER-Performance Audits
Audits that determine if resources are protected or used them in the best manner
possible is a _______. - ANSWER-Performance Audits, Economy and efficiency
_________ in auditing means using sound judgment in establishing scope,
methodology and testing procedures. - ANSWER-Using professional judgment
Organizations conducting audits under the GAO guidelines should have an external
peer review performed independent of the audit organization at least once every
_________ years. - ANSWER-3
Auditor's consideration of materiality is ___________. - ANSWER-A matter of
professional judgment
True or False? Follow-up is required to determine if material findings have been
corrected from previous audits. - ANSWER-TRUE
Internal Controls over safeguarding assets should provide _________ regarding
prevention or timely detection of wrongdoing. - ANSWER-Reasonable Assurance
In audit terminology a(n) ___________is a situation that exists. - ANSWER-Condition
In audit terminology a(n) ___________is that directive, order or law that determines how
a process is done or presented. - ANSWER-Criteria
An auditor should have _______, _______, _______ evidence. In other words they
should have an adequate amount of the best available and pertinent evidence available.
- ANSWER-Sufficient, Competent, Relevant
True or false? Auditors are required to gain an understanding of all management
controls of an activity they are auditing. - ANSWER-FALSE. Auditors are required to
gain an understanding of the controls in place for the area to be audited. There is no
requirement to have an understanding of all controls in place.
True or false? Auditor's should continue to conduct interrogations of potential violators
in cases when clear evidence of theft has occurred. - ANSWER-FALSE. Auditors are
neither investigators or law enforcement.
If an auditor is trying to determine if an entity is using resources economically and
efficiently they are conducting an ___________. - ANSWER-Performance
Correct Answers
The ________phase of a Government Audit defines the scope and methodology to
provide sufficient competent and relevant evidence to achieve the audit objectives. -
ANSWER-Planning
Which standards apply to Federal Government Audits? - ANSWER-GAGAS, the yellow
book
Who supervisors monitors and initiates audits and investigations relating to DoD
programs and operations? - ANSWER-The DODIG
True or False? An internal audit organization provides absolute assurance that waste,
fraud and abuse will not occur. - ANSWER-FALSE. No audit or review can give
absolute assurance that improprieties did not or will not occur.
How many hours of continuing professional education must an auditor complete
__________ (a) each two years and what is the minimum in any of the years
_________(b)? - ANSWER-80 (a) and 20 (b)
The minimum number of hours of continuing education an auditor must complete each
year and over a two year period is _______ and ______. At least __________ hours
must be directly related to government functions. - ANSWER-20, 80, 24
The audit organization has the responsibility for ensuring that independence is
maintained, applicable standards are followed, they have adequate internal controls in
place, they under go external reviews and that audits are conducted by auditors with the
necessary ________. - ANSWER-skills
Government audits provide essential elements of public accountability and ________. -
ANSWER-Control
Audits that provide reasonable assurance that financial statements are presented fairly
and whether information is presented in proper format are called___________. -
ANSWER-Financial and financially related audits
Auditors ________ should provide sufficient information to enable an experienced
auditor with no prior connection to the audit to come to the same conclusion regarding
conclusions and judgments. - ANSWER-Working Papers
, Audits that provide an objective and systematic examination of evidence for the purpose
of providing an independent assessment of an organization is
called_____________________. - ANSWER-Performance Audits
Audits that determine if resources are protected or used them in the best manner
possible is a _______. - ANSWER-Performance Audits, Economy and efficiency
_________ in auditing means using sound judgment in establishing scope,
methodology and testing procedures. - ANSWER-Using professional judgment
Organizations conducting audits under the GAO guidelines should have an external
peer review performed independent of the audit organization at least once every
_________ years. - ANSWER-3
Auditor's consideration of materiality is ___________. - ANSWER-A matter of
professional judgment
True or False? Follow-up is required to determine if material findings have been
corrected from previous audits. - ANSWER-TRUE
Internal Controls over safeguarding assets should provide _________ regarding
prevention or timely detection of wrongdoing. - ANSWER-Reasonable Assurance
In audit terminology a(n) ___________is a situation that exists. - ANSWER-Condition
In audit terminology a(n) ___________is that directive, order or law that determines how
a process is done or presented. - ANSWER-Criteria
An auditor should have _______, _______, _______ evidence. In other words they
should have an adequate amount of the best available and pertinent evidence available.
- ANSWER-Sufficient, Competent, Relevant
True or false? Auditors are required to gain an understanding of all management
controls of an activity they are auditing. - ANSWER-FALSE. Auditors are required to
gain an understanding of the controls in place for the area to be audited. There is no
requirement to have an understanding of all controls in place.
True or false? Auditor's should continue to conduct interrogations of potential violators
in cases when clear evidence of theft has occurred. - ANSWER-FALSE. Auditors are
neither investigators or law enforcement.
If an auditor is trying to determine if an entity is using resources economically and
efficiently they are conducting an ___________. - ANSWER-Performance
