Question 1

The GAO Government Auditing Standards requirements for written reports in financial statement audits do not include

Accepted Answer

A)  Audit report on financial statements. 
B)  A report of any significant accomplishments and management improvements. 
C)  A report on the auditee's internal control structure and the control risk assessment. 
D)  A report on the auditee's compliance with applicable laws and regulations. 
A)  Audit report on financial statements. 
B)  A report of any significant accomplishments and management improvements. 
C)  A report on the auditee's internal control structure and the control risk assessment. 
D)  A report on the auditee's compliance with applicable laws and regulations.

Question 2

The auditing standards of the Institute of Internal Auditors required of internal auditors are similar to the requirement of GAAS for practicing CPAs.

Accepted Answer

A) True 
 B)False

Question 3

The definition of administrative control does not include reference to

Accepted Answer

A)  Operational efficiency. 
B)  Accounting errors. 
C)  Adherence to managerial policies. 
D)  Plan of organization. 
A)  Operational efficiency. 
B)  Accounting errors. 
C)  Adherence to managerial policies. 
D)  Plan of organization.

Question 4

In government and internal performance auditing,which of the following is the least important consideration when performing the fieldwork?

Accepted Answer

A)  Determining the applicable generally accepted government accounting principles pronounced by the GASB. 
B)  Defining problem areas or opportunities for improvement and defining program goals. 
C)  Selecting and performing procedures designed to obtain evidence about operational problems and production output. 
D)  Evaluating evidence in terms of economy, efficiency, and achievement of program goals. 
A)  Determining the applicable generally accepted government accounting principles pronounced by the GASB. 
B)  Defining problem areas or opportunities for improvement and defining program goals. 
C)  Selecting and performing procedures designed to obtain evidence about operational problems and production output. 
D)  Evaluating evidence in terms of economy, efficiency, and achievement of program goals.

Question 5

When dealing with standards,measurements,and comparisons,input measurements are most important for audits of

Accepted Answer

A)  Economy. 
B)  Efficiency. 
C)  Program results. 
D)  Financial statements. 
A)  Economy. 
B)  Efficiency. 
C)  Program results. 
D)  Financial statements.

Question 6

Following are five cases (1-5)illustrating different types of audit engagements.In the space provided by each case,indicate the type of audit that would be conducted (H-M),the specific type of auditor who might perform the engagement (P-S),and the auditing standards that would probably apply for the engagement (W-Z).

Accepted Answer

@#IMG-DLM& Case 1.A CPA firm's review of the effec

Question 7

Compliance auditing in audits performed under the Single Audit Act of 1984 in accordance with GAGAS is necessary for an auditor's

Accepted Answer

A)  Report on the auditee's internal control, including reportable conditions and material weaknesses. 
B)  Opinion on the auditee's observance, or lack thereof, of applicable laws and regulations. 
C)  Opinion on the auditee's financial statements. 
D)  Report of a supplementary schedule of federal assistance programs and amounts. 
A)  Report on the auditee's internal control, including reportable conditions and material weaknesses. 
B)  Opinion on the auditee's observance, or lack thereof, of applicable laws and regulations. 
C)  Opinion on the auditee's financial statements. 
D)  Report of a supplementary schedule of federal assistance programs and amounts.

Question 8

Internal auditors are always employed by the organization that they audit such as a bank,hospital,or industrial company.

Accepted Answer

A) True 
 B)False

Question 9

CPAs in public practice most often are involved in governmental audits as a result of responding to an agency's ___________________________________.

Accepted Answer

request fo

Question 10

What are the different types of internal audits?

Accepted Answer

1.Financial audits.

Question 11

A typical objective of an operational audit is for the auditor to

Accepted Answer

A)  Determine whether the financial statements fairly present the company's operations. 
B)  Evaluate the feasibility of attaining the company's operational objectives. 
C)  Make recommendations for achieving company objectives. 
D)  Report on the company's relative success in attaining profit maximization. 
A)  Determine whether the financial statements fairly present the company's operations. 
B)  Evaluate the feasibility of attaining the company's operational objectives. 
C)  Make recommendations for achieving company objectives. 
D)  Report on the company's relative success in attaining profit maximization.

Question 12

Which of the following is not required to become a certified internal auditor (CIA)?

Accepted Answer

A)  Hold a college degree. 
B)  Pass a two-day examination. 
C)  Have a full-time position as an internal auditor. 
D)  Meet an experience requirement. 
A)  Hold a college degree. 
B)  Pass a two-day examination. 
C)  Have a full-time position as an internal auditor. 
D)  Meet an experience requirement.

Question 13

Efficiency,economy,and program outputs may be measured only in terms of monetary expenditures.

Accepted Answer

A) True 
 B)False

Question 14

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that

Accepted Answer

A)  Management has planned and designed the process to provide reasonable assurance of achieving objectives and goals. 
B)  Management directs processes to provide reasonable assurance of achieving objectives and goals. 
C)  The organization's objectives and goals will be achieved efficiently and economically. 
D)  The organization's objectives and goals will be achieved in an accurate and timely manner and with minimal use of resources. 
A)  Management has planned and designed the process to provide reasonable assurance of achieving objectives and goals. 
B)  Management directs processes to provide reasonable assurance of achieving objectives and goals. 
C)  The organization's objectives and goals will be achieved efficiently and economically. 
D)  The organization's objectives and goals will be achieved in an accurate and timely manner and with minimal use of resources.

Question 15

Performance audits determine whether an entity has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements.

Accepted Answer

A) True 
 B)False

Question 16

The reasons for outsourcing an internal audit include

Accepted Answer

A)  More expertise only. 
B)  More expertise and improved control over audit costs. 
C)  Improved control over audit costs and improved alignment with company goals. 
D)  All of the above. 
A)  More expertise only. 
B)  More expertise and improved control over audit costs. 
C)  Improved control over audit costs and improved alignment with company goals. 
D)  All of the above.

Question 17

The work of internal auditors may affect the independent auditor's

Accepted Answer

A)  Procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement only. 
B)  Procedures performed in obtaining an understanding of the internal control structure and substantive tests performed in gathering direct evidence only. 
C)  Procedures performed in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence only. 
D)  Procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence. 
A)  Procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement only. 
B)  Procedures performed in obtaining an understanding of the internal control structure and substantive tests performed in gathering direct evidence only. 
C)  Procedures performed in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence only. 
D)  Procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence.

Question 18

Fraud examiners have four main objectives in performing an investigation.Which of the following is not one of those objectives?

Accepted Answer

A)  Determine whether a fraud exists. 
B)  Determine who was involved in the fraud. 
C)  Determine how the fraud occurred. 
D)  Determine the effect on financial statement users. 
A)  Determine whether a fraud exists. 
B)  Determine who was involved in the fraud. 
C)  Determine how the fraud occurred. 
D)  Determine the effect on financial statement users.

Question 19

Compliance auditing refers to the process of ensuring that a company is operating within _________________,___________________,and _________________________.

Accepted Answer

laws; regu

Question 20

Which of the following statements is true?

Accepted Answer

A)  External auditors must consider the internal audit function as part of obtaining an understanding of a company's internal control structure. 
B)  External auditors must review all work performed by internal auditors. 
C)  External auditors must investigate the competence and objectivity of internal auditors. 
D)  External auditors must share responsibility for the work of internal auditors if it is used for evidence for the financial statement audit. 
A)  External auditors must consider the internal audit function as part of obtaining an understanding of a company's internal control structure. 
B)  External auditors must review all work performed by internal auditors. 
C)  External auditors must investigate the competence and objectivity of internal auditors. 
D)  External auditors must share responsibility for the work of internal auditors if it is used for evidence for the financial statement audit.

The GAO Government Auditing Standards requirements for written reports in financial statement audits do not include

The auditing standards of the Institute of Internal Auditors required of internal auditors are similar to the requirement of GAAS for practicing CPAs.

The definition of administrative control does not include reference to

In government and internal performance auditing,which of the following is the least important consideration when performing the fieldwork?

When dealing with standards,measurements,and comparisons,input measurements are most important for audits of

Compliance auditing in audits performed under the Single Audit Act of 1984 in accordance with GAGAS is necessary for an auditor's

Internal auditors are always employed by the organization that they audit such as a bank,hospital,or industrial company.

CPAs in public practice most often are involved in governmental audits as a result of responding to an agency's ___________________________________.

What are the different types of internal audits?

A typical objective of an operational audit is for the auditor to

Which of the following is not required to become a certified internal auditor (CIA)?

Efficiency,economy,and program outputs may be measured only in terms of monetary expenditures.

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that

Performance audits determine whether an entity has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements.

The reasons for outsourcing an internal audit include

The work of internal auditors may affect the independent auditor's

Fraud examiners have four main objectives in performing an investigation.Which of the following is not one of those objectives?

Compliance auditing refers to the process of ensuring that a company is operating within _______,_,and _________________.

Which of the following statements is true?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 16: Internal Governmental and Fraud Audits

The GAO Government Auditing Standards requirements for written reports in financial statement audits do not include

The auditing standards of the Institute of Internal Auditors required of internal auditors are similar to the requirement of GAAS for practicing CPAs.

The definition of administrative control does not include reference to

In government and internal performance auditing,which of the following is the least important consideration when performing the fieldwork?

When dealing with standards,measurements,and comparisons,input measurements are most important for audits of

Compliance auditing in audits performed under the Single Audit Act of 1984 in accordance with GAGAS is necessary for an auditor's

Internal auditors are always employed by the organization that they audit such as a bank,hospital,or industrial company.

CPAs in public practice most often are involved in governmental audits as a result of responding to an agency's ___________________________________.

What are the different types of internal audits?

A typical objective of an operational audit is for the auditor to

Which of the following is not required to become a certified internal auditor (CIA)?

Efficiency,economy,and program outputs may be measured only in terms of monetary expenditures.

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that

Performance audits determine whether an entity has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements.

The reasons for outsourcing an internal audit include

The work of internal auditors may affect the independent auditor's

Fraud examiners have four main objectives in performing an investigation.Which of the following is not one of those objectives?

Compliance auditing refers to the process of ensuring that a company is operating within _________________,___________________,and _________________________.

Which of the following statements is true?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Compliance auditing refers to the process of ensuring that a company is operating within _______,_,and _________________.