Candidate Handbook

Description of the Auditing - Multiple Choice Test

The assessment tools used for this technical competency (auditing) consist of two types of tests aimed at assessing five different levels of proficiency.  Multiple choice tests are given to measure proficiency levels 1 and 2, and a Portfolio of Technical Competency is conducted to measure proficiency levels 3, 4, and 5.

This handbook describes the multiple choice tests aimed at proficiency levels1 and 2.  Please refer to the Portfolio of Technical Competency - Candidate Handbook, should you wish to be tested at proficiency levels 3, 4, and 5.

Proficiency Level 1: Basic awareness of subject matter

Description of Test:

A multiple choice test that measures proficiency level 1, containing 30 questions where you choose the correct answer from among 4 choices

Time limit for test: 40 minutes

What is Measured:

Auditing principles, techniques and/or practices, including: auditing concepts, types of evidence, types of reports, and purpose of the CICA handbooks

Pass Mark:

You must score 17 or greater to attain level 1 proficiency.

Proficiency Level 2: Basic capability and can apply in common situations

Description of Test:

A multiple choice test that measures proficiency level 2, containing 30 questions where you choose the correct answer from among 4 choices

Time limit for test: 40 minutes

What is Measured:

Auditing principles, techniques and/or practices, including: planning/audit scope, evidence, audit manuals (including audit procedures), generally accepted auditing standards, assertions, and risk assessment

Pass Mark:

You must score 17 or greater to attain level 2 proficiency.

Candidate information

Before the test

  • Ensure you are aware of the exact location, date, and time of your test session.
  • Review the sample question(s), if applicable, to familiarize yourself with the test structure.
  • If you have a disability that could affect your test performance, you must inform the responsible resourcing advisor, as soon as possible, so that appropriate accommodations can be made.

On the day of the test

  • If you do not feel well on the day of the test and you think that this will impact on your test results, you must inform the contact on your letter of invitation as soon as possible.
  • Arrive in advance so that you do not feel rushed or overly stressed. You will not be admitted to the room once the test has begun.
  • Bring at least one photo identification card and your Personal Record Identifier (PRI) if you are a public servant.
  • Do not bring smart phones, cell phones, USB keys, PDAs, digital cameras or any other electronic device into the testing room, they are not permitted. This will save you the trouble of checking them in with the test administrator.

When taking tests in general

  • Read the instructions thoroughly and completely before you begin.
  • Organize your time, work quickly, and use all the time available.
  • If you finish the test before time is up, review your answers.
  • For handwritten tests, write neatly so you don't lose points for answers which the scorer cannot read.

When taking multiple-choice tests

  • Read the whole question before answering it. Eliminate answers that you know are wrong. By reducing the number of choices, you increase your chance of selecting the correct answer.
  • Don't spend too much time on a question that you find too difficult. Leave it and return to it if you have time at the end.
  • If completing answer sheets, use only HB pencils that have been provided. Any answers recorded in ink will be scored as incorrect.
  • Ensure that the question number on your answer sheet matches the question number you are answering

After the test

"The head of a government institution may refuse to disclose any record requested under this Act that contains information relating to testing or auditing procedures or techniques or details of specific tests to be given or audits to be conducted if the disclosure would prejudice the use or results of particular tests or audits."

Failure to comply with this regulation and/or engaging in a fraudulent practice will result in disciplinary action.
  • Do not discuss or share the content of a standardized test. Also, you cannot view or obtain a copy of any standardized test material because they are protected by the Access to Information Act. Section 22 of this act stipulates that:

Additional information for candidates writing online tests

As a test-taker, you may be required to write a test on a computer instead of the traditional paper and pencil format.

Computer skills

Only two computer skills are necessary to write an online test. First, you will need to point your mouse's cursor in specific areas of your screen and click with your index finger. During your online testing session, you will need to use your mouse to mark your answers and, when necessary, to move "back" to a previous question and "next" to the following question. Second, you will use your mouse to point on the scroll bar to the right of the screen in order to move up or down on a page.

Instructions

As with paper and pencil formats of tests, online tests are proctored, which means that test administrators (TA) are present to ensure that the session follows the CRA's administrative and security procedures. For example, the TA will begin with the general test session instructions and then the specific instructions for the test you are taking. TAs will follow all current procedures concerning late candidates, temporary absences from the testing room, withdrawal of candidates from a testing session, candidates requiring accommodations, cheating, disruptive candidates, disputes regarding test questions, emergencies and other situations.

Security and Privacy

Your name is assigned to an electronic version of a specific test. Your session will start with a login screen. You will receive two identification (ID) numbers at the testing session: the first number is your unique Test Taker ID and the other number, the Test Administrator ID. These measures are to ensure test security. The TA will take you through this simple process. Please note: for each online test that you are scheduled to take, you will be issued a unique Test Taker ID.

Timed tests

All CRA online tests are timed; the computer ensures fairness by controlling the duration of the session, from the exact moment each test-taker clicks "Start Your Test". A timer in the upper right corner of the screen will show exactly how much time is left. After the allocated time the computer will close your test. If you finish early, you can use the remaining time to review your answers.

How to respond to questions

Although this will vary from test to test, Figure 1 shows an example of a screen presenting a multiple-choice question. The main elements of this screen are the name of the test (in this case "Practice Test (D01A1E)"), the question number you are responding to, and the total number of questions in the test (in this case "Question 1 / 6"), the actual question and, in the case of a multiple-choice question, the options from which you can choose. Of course, more text can appear, depending upon the amount of text in the question and in the answer choices. Point your mouse's cursor and click the circle next to your answer choice. The upper left corner of the screen shows a "Mark for Review" box you can check to remind yourself to revisit any question later if you have time. Finally, in the bottom portion of the screen, "Back" and "Next" buttons will allow you to move back to the previous question or forward to the next question.

This information will be repeated immediately before the testing session and your test administrator will answer any questions.

How to review your answers

Two strategies are available. During the test, you can use the "Back" and "Next" buttons to navigate within your test. If, after answering all the questions, you have time left, you will see a screen that looks like the one shown in Figure 2. This is the review screen. In this hypothetical example, the upper right corner shows that you still have 3 minutes left to complete the test. The screen shows the answers you provided for all the questions. In this case, the PSC Practice test has 6 questions. For example, at question 1 you answered "4", at question 2 you answered "3", and so on. When "Marked" appears, like as with question 1, it means you checked the "Mark for Review" box for that question. Click on the circle next to the question number, then click on the "Edit" button. This will take you directly to the question. You can change your answer or leave it as is. Marking questions does not influence your score. If you are satisfied, you can click on "Submit". You will then be asked to confirm that you want to end your test. If you click on "Yes" your results will be uploaded and your session will be complete.

Rescores

Rescore requests are not accepted for online tests. Managers are encouraged however to respond to candidates' concerns.

Figure 1
Example of a test screen showing a multiple-choice question
Firgure 2
Example of a Test review screen showing a list of marked questions

Sample test questions:
Auditing - Multiple Choice Test

General instructions plus practice questions have been provided for the auditing technical competency.  Try to answer the question for both levels and verify your answers with those on the grid provided at the bottom of the last page.

This test consists of 30 questions.  All of the questions are in multiple choice format.  For these questions, you are presented with a number of possible answers represented by the letters A, B, C and D.  Your task is to choose the best answer from the four presented.

Au - MCT: Level 1

1. When is there sufficient audit evidence?

  1. when it substantiates the auditor's conclusion
  2. when the allotted time has been utilized
  3. when there is more evidence than was documented in previous years
  4. when 100% of the transactions have been tested

2. The demand for independent audits is now much greater than 50 years ago because of increased information risks.  The following are possible factors that increase the likelihood that unreliable information will be provided, EXCEPT:

  1. the use of estimates
  2. voluminous data
  3. complex transactions
  4. the cost of information

3. A large amount of audit time is usually spent on cash transactions audits, EXCEPT for which of the following:

  1. cash is the end result of most transactions
  2. cash is susceptible to misappropriation
  3. it is expected that cash balances should be more precisely determined than other accounting figures
  4. all cash is deposited by the business into its bank account

4. Why do we need (audited) financial statements?

  1. to show details of revenues and expenses
  2. to provide fair, objective and independent opinions
  3. to identify who the shareholders are
  4. to summarize computer books and records

5. Unaudited financial statements may not be reliable because:

  1. they include economic data
  2. they are based on historical data
  3. the target audience includes shareholders
  4. the level of assurance provided is lower than in an audit

6. As a CRA auditor, which of the following would you consider the most authoritative source of guidance?

  1. Ontario Securities Commission (OSC) guidelines
  2. Canadian Institute of Chartered Accountants (CICA) handbook
  3. Securities and Exchange Commission (SEC) guidelines
  4. International Federation of Accountants (IFAC) guidelines

Au - MCT: Level 2

7. Which of the following is a good reason why the auditor should properly plan an audit?

  1. to enable the auditor to obtain sufficient appropriate audit evidence
  2. to complete the audit in a timely fashion
  3. to enable the disclosure of the scope and purpose of the audit
  4. all of the above

8. The following are ways in which a client can be contacted to arrange an audit, EXCEPT for one of the following. Which one?

  1. by telephone
  2. in writing
  3. a surprise visit
  4. contacting the client's authorized representative

9. In which order should the following four steps be taken when an auditor evaluates a client's internal control?

I. determine internal controls that should prevent or detect errors and other irregularities

II. identify weaknesses to determine their effect on the extent of auditing procedures to apply

III. determine whether the necessary procedures are being followed satisfactorily

IV. consider the type of errors or fraud and other irregularities that could occur

  1. I, II, III and IV
  2. I, III, IV and II
  3. IV, I, III and II
  4. III, IV, I and II

10. An audit manual:

  1. is a guide for the conduct of an examination
  2. takes the place of professional judgment
  3. applies to specific industries
  4. should be updated after each audit

11. A tour of a company's premises:

  1. is not important, as the books and records suffice for the audit
  2. is not important, as the tour is time-consuming
  3. is important, as it provides additional information
  4. does not affect the audit results

Answer Grid

  1. a
  2. d
  3. d
  4. b
  5. d
  6. b
  7. d
  8. c
  9. c
  10. a
  11. c
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