NYC Management Auditor Trainee Exam 6072
Master Study Guide Practice Questions,
Answers, and Rationales. Top Rated Latest
Version
1. Which of the following is one of the five fundamental ethical
principles in GAGAS?
A) Profit maximization
B) Public interest
C) Client advocacy
D) Competitive bidding
Answer>>B .GAGAS emphasizes serving the public interest first.
2. An auditor discovers a potential impairment to independence due to
a personal financial interest in the audited entity. According to GAGAS,
the auditor should:
A) Ignore it if immaterial
B) Document and eliminate or mitigate the threat
C) Proceed if management approves
D) Transfer the audit to another team member without
documentation
Answer>>B .Independence requires identifying, evaluating, and
addressing threats.
,3. Which GAGAS ethical principle requires auditors to conduct their
work with the best interest of the public in mind?
A) Integrity
B) Professional behavior
C) Public interest
D) Objectivity
Answer>>C .The public interest principle is foundational and drives the
others.
4. An auditor is offered a gift from the management of the audited
entity. According to the GAGAS principle of integrity, the auditor should:
A) Accept it if it is of nominal value
B) Refuse the gift to avoid any appearance of impropriety
C) Accept and disclose it in the report
D) Accept only if it does not influence the audit opinion
Answer>>B .Integrity requires honest conduct and avoiding situations
that could impair credibility.
5. Which of the following best describes the GAGAS principle of
objectivity?
A) Maintaining an unbiased and impartial mindset
,B) Always agreeing with management
C) Focusing only on financial data
D) Completing the audit as quickly as possible
Answer>>A .Objectivity ensures findings are impartial.
6. An audit team member previously worked as the CFO for the entity
being audited two years ago. This situation most directly threatens
which ethical principle?
A) Public interest
B) Professional behavior
C) Objectivity / Independence
D) Proper use of government resources
Answer>>C .Prior employment can create a familiarity or self-interest
threat to objectivity and independence.
7. Under GAGAS, auditors must maintain independence in:
A) Fact only
B) Appearance only
C) Both fact and appearance
D) Neither, as long as the report is accurate
Answer>>C .Independence in fact and appearance is required.
, 8. Which of the following is not one of the five fundamental ethical
principles in GAGAS?
A) Integrity
B) Confidentiality
C) Objectivity
D) Proper use of government information, resources, and position
Answer>>B .Confidentiality is important but not listed as one of the five
core principles (Public interest, Integrity, Objectivity, Proper use...,
Professional behavior).
9. When a threat to independence is identified, the auditor should:
A) Immediately withdraw from the engagement
B) Apply the conceptual framework: identify, evaluate, and address the
threat
C) Disclose it only if material
D) Ignore threats that are common in government auditing
Answer>>B .GAGAS uses a conceptual framework approach to
independence.
10. Continuing Professional Education (CPE) requirements under
GAGAS generally mandate how many hours every 2 years?
A) 20 hours
B) 40 hours (with at least 24 in government auditing or related topics)
Master Study Guide Practice Questions,
Answers, and Rationales. Top Rated Latest
Version
1. Which of the following is one of the five fundamental ethical
principles in GAGAS?
A) Profit maximization
B) Public interest
C) Client advocacy
D) Competitive bidding
Answer>>B .GAGAS emphasizes serving the public interest first.
2. An auditor discovers a potential impairment to independence due to
a personal financial interest in the audited entity. According to GAGAS,
the auditor should:
A) Ignore it if immaterial
B) Document and eliminate or mitigate the threat
C) Proceed if management approves
D) Transfer the audit to another team member without
documentation
Answer>>B .Independence requires identifying, evaluating, and
addressing threats.
,3. Which GAGAS ethical principle requires auditors to conduct their
work with the best interest of the public in mind?
A) Integrity
B) Professional behavior
C) Public interest
D) Objectivity
Answer>>C .The public interest principle is foundational and drives the
others.
4. An auditor is offered a gift from the management of the audited
entity. According to the GAGAS principle of integrity, the auditor should:
A) Accept it if it is of nominal value
B) Refuse the gift to avoid any appearance of impropriety
C) Accept and disclose it in the report
D) Accept only if it does not influence the audit opinion
Answer>>B .Integrity requires honest conduct and avoiding situations
that could impair credibility.
5. Which of the following best describes the GAGAS principle of
objectivity?
A) Maintaining an unbiased and impartial mindset
,B) Always agreeing with management
C) Focusing only on financial data
D) Completing the audit as quickly as possible
Answer>>A .Objectivity ensures findings are impartial.
6. An audit team member previously worked as the CFO for the entity
being audited two years ago. This situation most directly threatens
which ethical principle?
A) Public interest
B) Professional behavior
C) Objectivity / Independence
D) Proper use of government resources
Answer>>C .Prior employment can create a familiarity or self-interest
threat to objectivity and independence.
7. Under GAGAS, auditors must maintain independence in:
A) Fact only
B) Appearance only
C) Both fact and appearance
D) Neither, as long as the report is accurate
Answer>>C .Independence in fact and appearance is required.
, 8. Which of the following is not one of the five fundamental ethical
principles in GAGAS?
A) Integrity
B) Confidentiality
C) Objectivity
D) Proper use of government information, resources, and position
Answer>>B .Confidentiality is important but not listed as one of the five
core principles (Public interest, Integrity, Objectivity, Proper use...,
Professional behavior).
9. When a threat to independence is identified, the auditor should:
A) Immediately withdraw from the engagement
B) Apply the conceptual framework: identify, evaluate, and address the
threat
C) Disclose it only if material
D) Ignore threats that are common in government auditing
Answer>>B .GAGAS uses a conceptual framework approach to
independence.
10. Continuing Professional Education (CPE) requirements under
GAGAS generally mandate how many hours every 2 years?
A) 20 hours
B) 40 hours (with at least 24 in government auditing or related topics)
