Question 1

Regarding the single audit process,required supplemental information is considered to be within the scope of the audit.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following groups is responsible for administering the Single Audit Act?

Accepted Answer

A) OMB. 
B) GAO. 
C) AICPA. 
D) State Boards of Accountancy. 
A) OMB. 
B) GAO. 
C) AICPA. 
D) State Boards of Accountancy.

Question 3

What amount of continuing professional education would an auditor,who is not a CPA but who is engaged in the audit of a City that receives significant amounts of federal financial assistance,be required to complete?

Accepted Answer

A) Twenty-four hours every two years. 
B) Forty hours a year. 
C) Eighty hours every two years. 
D) None because the auditor is not a CPA. 
A) Twenty-four hours every two years. 
B) Forty hours a year. 
C) Eighty hours every two years. 
D) None because the auditor is not a CPA.

Question 4

An independent CPA is engaged to audit the financial statements of Holland City .The city has a variety of revenue sources including a $350,000 grant from the U.S.Department of Housing and Urban Development.Which of the following audit standards must the CPA use when conducting the audit?

Accepted Answer

A) The AICPA audit standards. 
B) The GAO audit standards. 
C) The OMB audit standards. 
D) All of the above. 
A) The AICPA audit standards. 
B) The GAO audit standards. 
C) The OMB audit standards. 
D) All of the above.

Question 5

Performance audits are sometimes referred to as "operational" audits.

Accepted Answer

A) True 
 B)False

Question 6

Reports issued by CPAs conducting audits subject to the GAO standards must include all of the following except:

Accepted Answer

A) A description of the scope of compliance testing. 
B) A description of the scope of internal control testing. 
C) A description of any irregularities and illegal acts found. 
D) A description of any sampling methodology and sampling plans used. 
A) A description of the scope of compliance testing. 
B) A description of the scope of internal control testing. 
C) A description of any irregularities and illegal acts found. 
D) A description of any sampling methodology and sampling plans used.

Question 7

Which of the following is NOT a consideration in resolving an ethical dilemma?

Accepted Answer

A) What are the facts? 
B) Who is affected? 
C) Who will know about this action? 
D) What are the alternative courses of action? 
A) What are the facts? 
B) Who is affected? 
C) Who will know about this action? 
D) What are the alternative courses of action?

Question 8

To "attest" means to confirm that something is true,correct,or genuine.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an objective of audits under the Single Audit Act? To ensure that

Accepted Answer

A) The entity's financial statements are not affected by immaterial errors or misstatements. 
B) The entity has not committed fraud. 
C) The entity has in place a system of internal control sufficient to ensure that financial statements are prepared in accordance with generally accepted accounting principles. 
D) The entity is satisfying the laws,regulations,and provisions that apply to each specific federal award. 
A) The entity's financial statements are not affected by immaterial errors or misstatements. 
B) The entity has not committed fraud. 
C) The entity has in place a system of internal control sufficient to ensure that financial statements are prepared in accordance with generally accepted accounting principles. 
D) The entity is satisfying the laws,regulations,and provisions that apply to each specific federal award.

Question 10

An attestation engagement might include examination of prospective or pro-forma financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT included in the general standards of GAGAS?

Accepted Answer

A) Qualifications. 
B) Quality control. 
C) Planning. 
D) Independence. 
A) Qualifications. 
B) Quality control. 
C) Planning. 
D) Independence.

Question 12

An auditor of any government or not-for-profit that receives federal monies must include a report on the entity's internal control structure within their audit report or provide a cross-reference to that report.

Accepted Answer

A) True 
 B)False

Question 13

An auditor is engaged to audit the Eastern Planning and Development District,a not-for-profit entity that receives federal financial assistance.The auditor designed his audit to provide reasonable assurance of detecting material misstatements resulting from illegal acts.What additional requirements does the auditor have with regard to compliance?

Accepted Answer

A) None. 
B) The auditor must design the audit to provide reasonable assurance of detecting noncompliance with terms of grants and contracts. 
C) The auditor must design the audit to provide reasonable assurance of detecting all misstatements resulting from illegal acts. 
D) The auditor must design the audit to provide reasonable assurance of detecting any fraud. 
A) None. 
B) The auditor must design the audit to provide reasonable assurance of detecting noncompliance with terms of grants and contracts. 
C) The auditor must design the audit to provide reasonable assurance of detecting all misstatements resulting from illegal acts. 
D) The auditor must design the audit to provide reasonable assurance of detecting any fraud.

Question 14

GAO standards specify that performance audit reports should be timely and include several items.Which of the following items is NOT required under the GAO standards?

Accepted Answer

A) Significant audit findings. 
B) Recommendation as to how to correct problems. 
C) Explanation of the audit's objectives and of its scope and methodology. 
D) Details about the number of items tested and the sampling techniques used. 
A) Significant audit findings. 
B) Recommendation as to how to correct problems. 
C) Explanation of the audit's objectives and of its scope and methodology. 
D) Details about the number of items tested and the sampling techniques used.

Question 15

Newly installed computer programs are one indicator that a government's participation in a federal program may be at high risk of noncompliance.

Accepted Answer

A) True 
 B)False

Question 16

Financial audits generally are conducted annually.Performance audits generally are conducted

Accepted Answer

A) Every year. 
B) _ Every two years. 
C) Every five years. 
D) On an irregular basis. 
A) Every year. 
B) _ Every two years. 
C) Every five years. 
D) On an irregular basis.

Question 17

The three categories of government auditing standards are

Accepted Answer

A) General,field work,and control standards. 
B) General,independence,and reporting standards. 
C) General,field work,and reporting standards. 
D) General,compliance,and documentation standards. 
A) General,field work,and control standards. 
B) General,independence,and reporting standards. 
C) General,field work,and reporting standards. 
D) General,compliance,and documentation standards.

Question 18

An independent auditor has conducted an audit of the financial statements of an entity that receives federal financial assistance,but that is not subject to the OMB standards.What reports)must the auditor issue at the completion of this engagement?

Accepted Answer

A) Only an opinion or disclaimer of opinion)on the financial statements. 
B) An opinion or disclaimer of opinion)on the financial statements and a report on internal control. 
C) An opinion or disclaimer of opinion)on the financial statements,a report on internal control,and a report on compliance. 
D) An opinion or disclaimer of opinion)on the financial statements,a report on internal control,and an opinion or disclaimer of opinion)on compliance. 
A) Only an opinion or disclaimer of opinion)on the financial statements. 
B) An opinion or disclaimer of opinion)on the financial statements and a report on internal control. 
C) An opinion or disclaimer of opinion)on the financial statements,a report on internal control,and a report on compliance. 
D) An opinion or disclaimer of opinion)on the financial statements,a report on internal control,and an opinion or disclaimer of opinion)on compliance.

Question 19

An elected state auditor,employed by the state,would NOT be considered independent when auditing which of the following entities?

Accepted Answer

A) A component unit of the state. 
B) An agency of the state. 
C) The office of the state auditor. 
D) All of the above. 
A) A component unit of the state. 
B) An agency of the state. 
C) The office of the state auditor. 
D) All of the above.

Regarding the single audit process,required supplemental information is considered to be within the scope of the audit.

Which of the following groups is responsible for administering the Single Audit Act?

What amount of continuing professional education would an auditor,who is not a CPA but who is engaged in the audit of a City that receives significant amounts of federal financial assistance,be required to complete?

An independent CPA is engaged to audit the financial statements of Holland City .The city has a variety of revenue sources including a $350,000 grant from the U.S.Department of Housing and Urban Development.Which of the following audit standards must the CPA use when conducting the audit?

Performance audits are sometimes referred to as "operational" audits.

Reports issued by CPAs conducting audits subject to the GAO standards must include all of the following except:

Which of the following is NOT a consideration in resolving an ethical dilemma?

To "attest" means to confirm that something is true,correct,or genuine.

Which of the following is an objective of audits under the Single Audit Act? To ensure that

An attestation engagement might include examination of prospective or pro-forma financial statements.

Which of the following is NOT included in the general standards of GAGAS?

An auditor of any government or not-for-profit that receives federal monies must include a report on the entity's internal control structure within their audit report or provide a cross-reference to that report.

GAO standards specify that performance audit reports should be timely and include several items.Which of the following items is NOT required under the GAO standards?

Newly installed computer programs are one indicator that a government's participation in a federal program may be at high risk of noncompliance.

Financial audits generally are conducted annually.Performance audits generally are conducted

The three categories of government auditing standards are

An independent auditor has conducted an audit of the financial statements of an entity that receives federal financial assistance,but that is not subject to the OMB standards.What reports)must the auditor issue at the completion of this engagement?

An elected state auditor,employed by the state,would NOT be considered independent when auditing which of the following entities?

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Federal Government Accounting

Filters

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

Regarding the single audit process,required supplemental information is considered to be within the scope of the audit.

Which of the following groups is responsible for administering the Single Audit Act?

What amount of continuing professional education would an auditor,who is not a CPA but who is engaged in the audit of a City that receives significant amounts of federal financial assistance,be required to complete?

An independent CPA is engaged to audit the financial statements of Holland City .The city has a variety of revenue sources including a $350,000 grant from the U.S.Department of Housing and Urban Development.Which of the following audit standards must the CPA use when conducting the audit?

Performance audits are sometimes referred to as "operational" audits.

Reports issued by CPAs conducting audits subject to the GAO standards must include all of the following except:

Which of the following is NOT a consideration in resolving an ethical dilemma?

To "attest" means to confirm that something is true,correct,or genuine.

Which of the following is an objective of audits under the Single Audit Act? To ensure that

An attestation engagement might include examination of prospective or pro-forma financial statements.

Which of the following is NOT included in the general standards of GAGAS?

An auditor of any government or not-for-profit that receives federal monies must include a report on the entity's internal control structure within their audit report or provide a cross-reference to that report.

GAO standards specify that performance audit reports should be timely and include several items.Which of the following items is NOT required under the GAO standards?

Newly installed computer programs are one indicator that a government's participation in a federal program may be at high risk of noncompliance.

Financial audits generally are conducted annually.Performance audits generally are conducted

The three categories of government auditing standards are

An independent auditor has conducted an audit of the financial statements of an entity that receives federal financial assistance,but that is not subject to the OMB standards.What reports)must the auditor issue at the completion of this engagement?

An elected state auditor,employed by the state,would NOT be considered independent when auditing which of the following entities?

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Federal Government Accounting

Filters