CPPA PRACTICE EXAM QUESTIONS
WITH 100% CORRECT ANSWERS
1. What is the foundation of an asset management review? (pg. 7-2)
a. Analyze defects
b. Written procedures
c. Testing attributes
d. Audit Objectives - Answer-b. Written procedures
2. The ultimate objective of an audit is to determine whether or not the asset
management system is what? (pg. 7-3)
a. Complete Audit
b. Impartial
c. Working properly
d. Timeframe - Answer-c. Working properly
3. When should conclusions with opinions and reports be based exclusively on
evidence obtained and assembled in accordance with what? (pg. 7-5)
a. Auditor's expressed opinion b. Auditors work papers '
c. Auditing standards applied d. Management's evaluation of the audit - Answer-c.
Auditing standards applied
4. An audit should state the audit's what? (pg. 7-3)
a. Objectives
b. Roadmap
c. Population
d. Observation - Answer-a. Objectives
5. Auditors must render judgment of the conclusions fairly, _________ or external
influences. (pg. 7-10)
a. Conclusions
b. Without bias
c. Materiality
d. Causality - Answer-b. Without bias
1. Valuation is the act or practice of establishing the degree of relative worth, utility or
importance of an item. Establishing value is essential for various reasons, including
which of the following? (pg. 8-1)
a. Depreciation
b. Objective
c. Determine return on investment
d. To validate book value - Answer-a. Depreciation
, 2. What standards are used by appraisers? (pg. 8-2)
a. National Institute of Standards and Technology (NIST)
b. American National Standards Institute (ANSI)
c. Uniform Standards of Professional Appraisal Practice (USPAP)
d. Fair Market Value (FMV) - Answer-c. Uniform Standards of Professional Appraisal
Practice (USPAP)
3. Valuation is based on characteristics of an asset and relevant information. This is
even more important when an individual performing a valuation is determining what?
(pg. 8-2)
a. Assessed Value
b. Fair Market Value
c. Insured Value
d. Salvage Value - Answer-b. Fair Market Value
4. _____________ is defined by the Uniform Standards of Professional Appraisal
Practice (USPAP) as one who is expected to perform valuation services competently
and in a manner that is independent, impartial and objective. (pg. 8-6)
a. Property Manager
b. Financial Officer
c. Professional Appraiser
d. Real Estate Agent - Answer-c. Professional Appraiser
5. _____________ is an improvement to property, which results in better quality, higher
capacity, or an extended useful life. (pg. 8-5)
a. Replacement
b. Appraising
c. Leases
d. Betterment - Answer-d. Betterment
1. What is a characteristic of a hazardous waste defined by RCRA? (pg. 9-3)
a. Ignitability
b. Solid
c. Waste
d. Petroleum - Answer-a. Ignitability
2. What statutory definition specifically excludes solid or dissolved materials in sewage?
(pg. 9- 5)
a. Resource Conservation and Recovery Act
b. Environmental Protection Agency
c. Clean Water Act
d. Hazardous Materials - Answer-c. Clean Water Act
WITH 100% CORRECT ANSWERS
1. What is the foundation of an asset management review? (pg. 7-2)
a. Analyze defects
b. Written procedures
c. Testing attributes
d. Audit Objectives - Answer-b. Written procedures
2. The ultimate objective of an audit is to determine whether or not the asset
management system is what? (pg. 7-3)
a. Complete Audit
b. Impartial
c. Working properly
d. Timeframe - Answer-c. Working properly
3. When should conclusions with opinions and reports be based exclusively on
evidence obtained and assembled in accordance with what? (pg. 7-5)
a. Auditor's expressed opinion b. Auditors work papers '
c. Auditing standards applied d. Management's evaluation of the audit - Answer-c.
Auditing standards applied
4. An audit should state the audit's what? (pg. 7-3)
a. Objectives
b. Roadmap
c. Population
d. Observation - Answer-a. Objectives
5. Auditors must render judgment of the conclusions fairly, _________ or external
influences. (pg. 7-10)
a. Conclusions
b. Without bias
c. Materiality
d. Causality - Answer-b. Without bias
1. Valuation is the act or practice of establishing the degree of relative worth, utility or
importance of an item. Establishing value is essential for various reasons, including
which of the following? (pg. 8-1)
a. Depreciation
b. Objective
c. Determine return on investment
d. To validate book value - Answer-a. Depreciation
, 2. What standards are used by appraisers? (pg. 8-2)
a. National Institute of Standards and Technology (NIST)
b. American National Standards Institute (ANSI)
c. Uniform Standards of Professional Appraisal Practice (USPAP)
d. Fair Market Value (FMV) - Answer-c. Uniform Standards of Professional Appraisal
Practice (USPAP)
3. Valuation is based on characteristics of an asset and relevant information. This is
even more important when an individual performing a valuation is determining what?
(pg. 8-2)
a. Assessed Value
b. Fair Market Value
c. Insured Value
d. Salvage Value - Answer-b. Fair Market Value
4. _____________ is defined by the Uniform Standards of Professional Appraisal
Practice (USPAP) as one who is expected to perform valuation services competently
and in a manner that is independent, impartial and objective. (pg. 8-6)
a. Property Manager
b. Financial Officer
c. Professional Appraiser
d. Real Estate Agent - Answer-c. Professional Appraiser
5. _____________ is an improvement to property, which results in better quality, higher
capacity, or an extended useful life. (pg. 8-5)
a. Replacement
b. Appraising
c. Leases
d. Betterment - Answer-d. Betterment
1. What is a characteristic of a hazardous waste defined by RCRA? (pg. 9-3)
a. Ignitability
b. Solid
c. Waste
d. Petroleum - Answer-a. Ignitability
2. What statutory definition specifically excludes solid or dissolved materials in sewage?
(pg. 9- 5)
a. Resource Conservation and Recovery Act
b. Environmental Protection Agency
c. Clean Water Act
d. Hazardous Materials - Answer-c. Clean Water Act
