Question 1

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

Accepted Answer

A) The auditor has no responsibility for this Schedule. 
B) The auditor should report on the Schedule without issuing an opinion. 
C) The auditor should express an opinion on the fair presentation of the Schedule. 
D) The auditor should express an opinion on the fair presentation of the Schedule in relation to the basic financial statements taken as a whole. 
A) The auditor has no responsibility for this Schedule. 
B) The auditor should report on the Schedule without issuing an opinion. 
C) The auditor should express an opinion on the fair presentation of the Schedule. 
D) The auditor should express an opinion on the fair presentation of the Schedule in relation to the basic financial statements taken as a whole.

Question 2

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

Accepted Answer

A) Only financial statements should be publicly available. 
B) Only performance audits should be publicly available. 
C) Neither financial statement audits nor performance audits should be publicly available. 
D) Both financial statement audits and performance audits should be publicly available. 
A) Only financial statements should be publicly available. 
B) Only performance audits should be publicly available. 
C) Neither financial statement audits nor performance audits should be publicly available. 
D) Both financial statement audits and performance audits should be publicly available.

Question 3

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.

Question 4

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"?

Accepted Answer

A) Significant prior audit findings. 
B) Significant violation of the terms of a specific grant due to a misunderstanding of the requirements. 
C) Weakness in the entity's internal controls. 
D) Lack of oversight by federal agencies. 
A) Significant prior audit findings. 
B) Significant violation of the terms of a specific grant due to a misunderstanding of the requirements. 
C) Weakness in the entity's internal controls. 
D) Lack of oversight by federal agencies.

Question 5

Which of the following is NOT included in the general requirements for which the auditor must test compliance with federal regulations?

Accepted Answer

A) Matching funds. 
B) Drug-free workplace. 
C) Political activity. 
D) Prevailing wage. 
A) Matching funds. 
B) Drug-free workplace. 
C) Political activity. 
D) Prevailing wage.

Question 6

The Schedule of Findings and Questioned Costs should include all of the following except

Accepted Answer

A) Information on types of opinions expressed on the financial statement. 
B) Information on all weaknesses in internal control. 
C) List of material noncompliance. 
D) Known questioned costs. 
A) Information on types of opinions expressed on the financial statement. 
B) Information on all weaknesses in internal control. 
C) List of material noncompliance. 
D) Known questioned costs.

Question 7

An auditor of any governmental 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 8

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 9

Which of the following is an example of a financial audit?

Accepted Answer

A) An audit of financial statements to determine if they are presented fairly in accordance with generally accepted accounting principles. 
B) An audit to determine whether the objectives of a new program are suitable and relevant and whether the entity has complied with laws and regulations that may have a material effect on the financial statements. 
C) An audit of the financial report on the Noxious Weed Special Revenue Fund to determine whether the entity has complied with specific financial-related requirements. 
D) An audit to determine whether an entity is acquiring its resources economically and efficiently. 
A) An audit of financial statements to determine if they are presented fairly in accordance with generally accepted accounting principles. 
B) An audit to determine whether the objectives of a new program are suitable and relevant and whether the entity has complied with laws and regulations that may have a material effect on the financial statements. 
C) An audit of the financial report on the Noxious Weed Special Revenue Fund to determine whether the entity has complied with specific financial-related requirements. 
D) An audit to determine whether an entity is acquiring its resources economically and efficiently.

Question 10

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

Accepted Answer

A) To independent CPAs conducting a performance audit of a governmental entity that receives no federal financial assistance. 
B) To independent CPAs auditing a nongovernmental entity that receives federal financial assistance. 
C) To independent CPAs auditing a governmental entity that receives no federal financial assistance. 
D) To state auditors auditing a local government that does not receive federal financial assistance. 
A) To independent CPAs conducting a performance audit of a governmental entity that receives no federal financial assistance. 
B) To independent CPAs auditing a nongovernmental entity that receives federal financial assistance. 
C) To independent CPAs auditing a governmental entity that receives no federal financial assistance. 
D) To state auditors auditing a local government that does not receive federal financial assistance.

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

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

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

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"?

Which of the following is NOT included in the general requirements for which the auditor must test compliance with federal regulations?

The Schedule of Findings and Questioned Costs should include all of the following except

An auditor of any governmental 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?

Which of the following is an example of a financial audit?

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

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

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

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

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

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"?

Which of the following is NOT included in the general requirements for which the auditor must test compliance with federal regulations?

The Schedule of Findings and Questioned Costs should include all of the following except

An auditor of any governmental 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?

Which of the following is an example of a financial audit?

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

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