Exam 16: Auditing Governments and Not-For-Profit Organizations

A CPA has conducted an audit of the financial statements of an entity that received federal financial assistance.The CPA identified one major federal program and four nonmajor federal programs.The CPA's responsibility related to the Schedule of Expenditures of Federal Awards is to:

The Single Audit Act distinguishes between major and nonmajor federal programs.One factor that distinguishes a major from a nonmajor program is inherent risk.Which of the following is NOT a characteristic of "inherent risk"?

A CPA prepares 'working papers' in an audit of an entity that receives federal financial assistance.Which of the following statements is true with regard to such 'working papers'?

GAO performance audit standards do NOT include which of the following?

Which of the following is NOT a technique used by an auditor in a performance audit engagement to gain an understanding of the controls in place to ensure that a program meets its objective?

Each federal financial assistance program has specific compliance requirements.Which of the following is not an example of the general nature of the specific compliance requirements?

Which of the following is NOT a necessary condition for a performance audit?

Which of the following is NOT true of an attestation engagement?

If a program to be subjected to a performance audit lacks clearly defined objectives,what can the auditor do?

A CPA has conducted an audit of the financial statements of an entity that received federal financial assistance and had one program that qualified as a major program.The CPA's responsibility related to reporting on internal control for this entity is to:

A program audit would include which of the following?

What is the auditor's responsibility for the Schedule of Expenditures of Federal Awards?

The Yellow Book is an informal term for the compendium of all AICPA audit standards.

Circular A-133,issued by the Office of Management and Budget,

Under which set of auditing standards is the auditor required to express an opinion on compliance with laws and regulations applicable to each major program?

Per OMB Circular A-133,"questioned costs" are those that should not be reimbursed under a federal grant because they are in violation of laws of provisions pertaining to the grant.

An independent CPA who conducts audits of entities that receive federal financial assistance has what responsibility related to a peer review?

A "cognizant agency" can be an employee of either a federal agency or an independent accounting firm.

Which of the following is true about the public availability of audit reports prepared under GAGAS?

The GAO publication Government Auditing Standards commonly known as the Yellow Book)is applicable in which of the following audit situations?