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

Which of the following is a true statement with regard to 'working papers' prepared by a CPA in an audit of an entity that receives federal financial assistance?

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:

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

Under GAO GAGAS standards, independent auditors must report all instances of fraud or illegal acts that they discover during the course of an audit.

A performance audit includes which of the following?

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

An independent CPA is engaged to audit the financial statements of the City of Highland Hills.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?

Which of the following is not a unique characteristic that distinguishes ethical decisions made by employees of governmental entities from those made by employees of for-profit entities?

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

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

A program audit would include which of the following?

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

Which of the following must have an audit under GAGAS?

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

Under which set of auditing standards is the auditor required to test compliance with laws and regulations that could have a direct and material effect on the financial statements of the entity?

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 compliance for this entity is to

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

The Single Audit Act of 1984 was passed to eliminate the costly practice of requiring separate audits for each federal program in which an organization participated.

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

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?