NYC MANAGEMENT AUDITOR TRAINEE
EXAM 6072 NEWEST COMMON EXAM
QUESTIONS 2026 -2027| 100 ORIGINAL
QUESTIONS & ANSWERS FROM ACTUAL
PAST PAPERS | DETAILED RATIONALES |
COMPLETE EXAM PREP GRADED A+
1. During an audit of a City program, an auditor determines that the
agency’s written procedure requires supervisory approval before
payments are processed. A review of 40 transactions finds that 9
payments lacked documented approval. What is the MOST
appropriate initial audit conclusion?
A. The agency has committed fraud in 22.5% of transactions.
B. The entire payment system is ineffective.
C. Answer: The auditor has identified a control exception that requires
further evaluation of its cause, significance, and frequency.
D. All payments without approval should automatically be classified as
improper expenditures.
The sample establishes an exception rate, but the auditor must
determine whether the exceptions resulted from isolated errors,
systemic weaknesses, or other causes before reaching a broader
conclusion.
, 2. An auditor is comparing payroll records with timekeeping records.
The payroll system shows 1,840 hours worked, while approved
time records support only 1,720 hours. What is the difference?
A. 6.25%
B. 7.00%
C. Answer: 120 hours
D. 140 hours
The difference is 1,840 − 1,720 = 120 hours.
3. An auditor interviews employees who independently report that a
required supervisory review is routinely skipped. The auditor then
discovers several transactions supporting those statements. Which
reasoning process is MOST directly illustrated?
A. Deductive reasoning
B. Answer: Inductive reasoning
C. Numerical reasoning
D. Mechanical reasoning
Inductive reasoning combines multiple specific observations to develop
a broader conclusion.
4. An agency reports that its operating costs declined by 8% during
the year. The auditor discovers that the agency excluded a major
maintenance category from the current-year calculation but
included it in the prior year. What is the auditor’s PRIMARY
concern?
A. The agency necessarily violated procurement law.
,B. The decrease proves the program became more efficient.
C. The maintenance expense should automatically be doubled.
D. Answer: The comparison may be misleading because the figures are
not consistently measured.
Comparative analysis is meaningful only when the underlying categories
and measurement methods are reasonably consistent.
5. An audit team selects 60 invoices from a population of 6,000
invoices using a random-number process. What is the sampling
fraction?
A. 0.1%
B. Answer: 1%
C. 10%
D. 100%
60 ÷ 6,000 = 0.01, or 1%.
6. An auditor finds that a contract requires delivery within 30 days.
Ten sampled deliveries occurred after 30 days, but the agency
accepted all of them without documented justification. Which
audit area is MOST directly implicated?
A. Budget forecasting
B. Financial statement presentation
C. Answer: Compliance with contractual requirements
D. Employee classification
, The primary issue is whether actual performance complied with an
established contractual requirement.
7. An auditor receives conflicting information from two agency
employees about how purchase orders are approved. What
should the auditor do FIRST?
A. Select the explanation that appears more reasonable.
B. Report both employees for providing inconsistent information.
C. Answer: Obtain additional evidence, such as procedures, records, or
observation, to resolve the discrepancy.
D. Disregard both interviews.
Conflicting testimony should be resolved through additional reliable
evidence rather than assumptions.
8. An audit sample contains 500 transactions. Twenty-five contain
errors. What is the observed error rate?
A. 2%
B. Answer: 5%
C. 10%
D. 20%
25 ÷ 500 = 0.05, or 5%.
9. A department's annual budget is $18 million. Actual expenditures
are $17.1 million. What percentage of the budget remained
unspent?
A. 3%
EXAM 6072 NEWEST COMMON EXAM
QUESTIONS 2026 -2027| 100 ORIGINAL
QUESTIONS & ANSWERS FROM ACTUAL
PAST PAPERS | DETAILED RATIONALES |
COMPLETE EXAM PREP GRADED A+
1. During an audit of a City program, an auditor determines that the
agency’s written procedure requires supervisory approval before
payments are processed. A review of 40 transactions finds that 9
payments lacked documented approval. What is the MOST
appropriate initial audit conclusion?
A. The agency has committed fraud in 22.5% of transactions.
B. The entire payment system is ineffective.
C. Answer: The auditor has identified a control exception that requires
further evaluation of its cause, significance, and frequency.
D. All payments without approval should automatically be classified as
improper expenditures.
The sample establishes an exception rate, but the auditor must
determine whether the exceptions resulted from isolated errors,
systemic weaknesses, or other causes before reaching a broader
conclusion.
, 2. An auditor is comparing payroll records with timekeeping records.
The payroll system shows 1,840 hours worked, while approved
time records support only 1,720 hours. What is the difference?
A. 6.25%
B. 7.00%
C. Answer: 120 hours
D. 140 hours
The difference is 1,840 − 1,720 = 120 hours.
3. An auditor interviews employees who independently report that a
required supervisory review is routinely skipped. The auditor then
discovers several transactions supporting those statements. Which
reasoning process is MOST directly illustrated?
A. Deductive reasoning
B. Answer: Inductive reasoning
C. Numerical reasoning
D. Mechanical reasoning
Inductive reasoning combines multiple specific observations to develop
a broader conclusion.
4. An agency reports that its operating costs declined by 8% during
the year. The auditor discovers that the agency excluded a major
maintenance category from the current-year calculation but
included it in the prior year. What is the auditor’s PRIMARY
concern?
A. The agency necessarily violated procurement law.
,B. The decrease proves the program became more efficient.
C. The maintenance expense should automatically be doubled.
D. Answer: The comparison may be misleading because the figures are
not consistently measured.
Comparative analysis is meaningful only when the underlying categories
and measurement methods are reasonably consistent.
5. An audit team selects 60 invoices from a population of 6,000
invoices using a random-number process. What is the sampling
fraction?
A. 0.1%
B. Answer: 1%
C. 10%
D. 100%
60 ÷ 6,000 = 0.01, or 1%.
6. An auditor finds that a contract requires delivery within 30 days.
Ten sampled deliveries occurred after 30 days, but the agency
accepted all of them without documented justification. Which
audit area is MOST directly implicated?
A. Budget forecasting
B. Financial statement presentation
C. Answer: Compliance with contractual requirements
D. Employee classification
, The primary issue is whether actual performance complied with an
established contractual requirement.
7. An auditor receives conflicting information from two agency
employees about how purchase orders are approved. What
should the auditor do FIRST?
A. Select the explanation that appears more reasonable.
B. Report both employees for providing inconsistent information.
C. Answer: Obtain additional evidence, such as procedures, records, or
observation, to resolve the discrepancy.
D. Disregard both interviews.
Conflicting testimony should be resolved through additional reliable
evidence rather than assumptions.
8. An audit sample contains 500 transactions. Twenty-five contain
errors. What is the observed error rate?
A. 2%
B. Answer: 5%
C. 10%
D. 20%
25 ÷ 500 = 0.05, or 5%.
9. A department's annual budget is $18 million. Actual expenditures
are $17.1 million. What percentage of the budget remained
unspent?
A. 3%
