IIA-CFSA

IIA-CFSA practice questions, page 13 of 21, with answer review and explanations.

Question 61

A client makes the following statement: "If you make us put property tags and numbers on major equipment, next we will have to put tags on every pen, pencil, and paper clip in the place." This is the argument that if a particular action is taken, it will inevitably lead to another, less desirable action. We may call this:

  1. Slippery slope
  2. Hasty generalization
  3. False use of authority
  4. Ad Hominem

Question 62

After implementation of a drop out recovery program, employment rate rose. The drop out recovery program is responsible for increases in employment and look for possible economic or other factors that might have contributed to the rise. This example may be referred towards:

  1. Post Hoc, Ergo Propter Hoc
  2. Ad Hominem
  3. Non Sequiter
  4. False use of authority

Question 63

For Example one exception in 1000 cases is probably not the reason enough to recommend overhauling the entire system, although the final answer must be derived from the context and the condition of the related control system. Which one of the following statements is clearly supported by this example?

  1. Auditors should base findings and recommendations on significant information
  2. Auditors should be aware of that the concept of materiality and significance take on different meanings in the public and private sectors
  3. Both of these
  4. None of these

Question 64

A manager of a very controversial program may have stolen only $200, but the controversy and public accountability aspects may make the 200 significant, where it would not be material private sector financial statement opinion audit. It means:

  1. Auditors should be aware that the concepts of materiality and significance take on different meanings in the public and private sector
  2. During the planning and reporting processes, government auditors may need to consider qualitative factors such as the visibility of the program under audit, or the newness of the program or changes in its condition
  3. Both of these
  4. None of these

Question 65

Audit evidence:

  1. Is sufficient when it is factual and would convince an informed person to reach the same conclusion
  2. Is competent if it consistently produces the same outcomes
  3. Is relevant when it is directly related to audit comments, recommendations and conclusions
  4. All of these