Question No. 1

A "clean" environmental audit:

AProvides complete assurance that a property is not contaminated

BTransfers liability for property pollution to the person performing the audit

CPoses risks as there are some pollutants for which the audit cannot test

DEnsures that a purchaser will not bear responsibility for polluted property

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Correct Answer: C

Question No. 2

Directors and officers:

AShould protect themselves from environmental liability by refusing to become personally responsible

BMay be personally responsible for allowing pollution to occur unless they can show that they used due diligence to prevent the pollution from occurring

CHave no obligation with respect to environmental damage

DCan only be responsible for environmental damage if they were directly involved in its creation

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Correct Answer: B

Question No. 3

An effective environmental auditing system will likely include all of the following general elements Except:

AImplicit top management support for environmental auditing and commitment to followup on audit findings

BAdequate team staffing and auditor training

CA process that collects, analyzes, interprets and documents information sufficient to achieve audit objectives

DAn environmental auditing function independent of audited activities.

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Correct Answer: A

Question No. 4

During audit of the financial statements, the auditors are concerned with the verification and determination of which one of the following items?

AStatements, accuracy, and feasibility

BDate, accuracy, and reliability

CPolicies, value, and reliability

DCycle, policies, and reliability

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Correct Answer: B

Question No. 5

Which one of the following is grammatically incorrect?

AEvery intern and trainee is aware of the security concerns

BNeither the section head nor the supervisor has signed the evaluation form

CMore than half of the forms received last month were incomplete

DThe editorial changes, in addition to the new font, makes the manual more readable

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Correct Answer: D

Free IIA CPEA Exam Actual Questions

The questions for CPEA were last updated On Jan 17, 2025