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 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:

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

An independent CPA is conducting an audit of an entity that receives federal financial assistance and is subject to the GAO standards GAGAS.The auditor must design the audit to provide reasonable assurance of detecting which of the following?

Which of the following is NOT a key difference between financial and performance audits?

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

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 independent CPA is conducting an audit of an entity that is subject to the GAO audit standards, but is not subject to the OMB audit standards.While conducting the audit, the CPA found that the entity had violated a law that had a large, but not material, potential penalty associated with such violation.There was no accrual for the potential penalty or disclosure of the violation.What actions must the CPA take with regard to this violation?

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?

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

GAO independence guidelines permit CPA firms to determine the estimated useful lives of their clients' assets.

Which of the following is an objective of the Single Audit Act?

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 the following is not included in the GAO auditing standards for financial statement audits?

Performance audits must be conducted by independent auditors.

The AICPA originally established auditing standards for federal single audits.

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

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 assure that a program meets its objective?

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

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?

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