Question 1

The Government Accountability Office has authority for issuing Governmental Auditing Standards.

Accepted Answer

A) True 
 B)False

Question 2

A disclaimer of opinion is the appropriate audit opinion when the auditor is not independent.

Accepted Answer

A) True 
 B)False

Question 3

Beginning in 2012,entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $ 50,000 may file Form 990-N (electronic postcard).

Accepted Answer

A) True 
 B)False

Question 4

What organization oversees the promulgation of Government Auditing Standards?

Accepted Answer

A)  Government Accountability Office. 
B)  Governmental Accounting Standards Board. 
C)  Public Companies Accounting Oversight Board. 
D)  Government Accounting Oversight Committee. 
A)  Government Accountability Office. 
B)  Governmental Accounting Standards Board. 
C)  Public Companies Accounting Oversight Board. 
D)  Government Accounting Oversight Committee.

Question 5

Tax-exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

Accepted Answer

A) True 
 B)False

Question 6

Entities that are tax-exempt under IRS Section 501(c)3 are permitted to endorse political candidates or attempt to influence legislation.

Accepted Answer

A) True 
 B)False

Question 7

A ratio that measures a not-for-profit organization's solvency is:

Accepted Answer

A)  Net assets/expenses. 
B)  Program expense ratio. 
C)  Working capital ratio. 
D)  Fund-raising efficiency. 
A)  Net assets/expenses. 
B)  Program expense ratio. 
C)  Working capital ratio. 
D)  Fund-raising efficiency.

Question 8

What is an "opinion unit" and what are the five opinion units for state and local governments?

Accepted Answer

In any audit engagement,the auditor must

Question 9

Which of the following is an area of concern by the IRS with respect to tax-exempt organizations?

Accepted Answer

A)  Cost allocations. 
B)  Excess executive compensation. 
C)  Organizations operating out of their tax-exempt purpose. 
D)  All the above. 
A)  Cost allocations. 
B)  Excess executive compensation. 
C)  Organizations operating out of their tax-exempt purpose. 
D)  All the above.

Question 10

Government auditing standards are commonly known as:

Accepted Answer

A)  The Yellow book. 
B)  The Green Book. 
C)  The Blue Book. 
D)  The Red book. 
A)  The Yellow book. 
B)  The Green Book. 
C)  The Blue Book. 
D)  The Red book.

Question 11

In a disclaimer of opinion,the auditor states that no opinion is being expressed.

Accepted Answer

A) True 
 B)False

Question 12

Assuming an auditee is considered low-risk,the auditor is required to express an opinion on compliance on major programs,which must add up to 25 percent of federal funds expended by the auditee.

Accepted Answer

A) True 
 B)False

Question 13

Service Efforts and Accomplishments reporting is relevant because:

Accepted Answer

A)  SEA reporting provides more complete information about a government entity's performance than can be provided by the basic financial statements. 
B)  The GASB requires supplemental reporting of service efforts and accomplishments. 
C)  Enterprise fund statements do not do a good job of measuring efficiency or effectiveness. 
D)  All of the above. 
A)  SEA reporting provides more complete information about a government entity's performance than can be provided by the basic financial statements. 
B)  The GASB requires supplemental reporting of service efforts and accomplishments. 
C)  Enterprise fund statements do not do a good job of measuring efficiency or effectiveness. 
D)  All of the above.

Question 14

Which of the following is not a difference between private sector auditing and governmental auditing?

Accepted Answer

A)  The public availability of audit reports. 
B)  Testing of compliance with laws and regulations. 
C)  Governmental audits require auditor knowledge of government accounting and auditing. 
D)  None of the above; these are all differences between private sector auditing and governmental auditing. 
A)  The public availability of audit reports. 
B)  Testing of compliance with laws and regulations. 
C)  Governmental audits require auditor knowledge of government accounting and auditing. 
D)  None of the above; these are all differences between private sector auditing and governmental auditing.

Question 15

A local government has four federal grants.Expenditures amounted to $1,000,000 during the year ended June 30,2014,as follows:
   A.Which grants would the auditor be required to audit,assuming the government is not found to be low risk?
B.Which grants would the auditor be required to audit,assuming the government is found to be low risk?

Accepted Answer

A.If the government is not found to be l

Question 16

Entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $ 500,000 and total assets less than $ 2.5 million may file Form 990-EZ

Accepted Answer

A) True 
 B)False

Question 17

A public charity is:

Accepted Answer

A)  An organization founded and operated exclusively for public benefit. 
B)  An organization that receives more than one-third of its support from a combination of contributions, membership fees, and gross receipts from exempt activities. 
C)  Both A and B. 
D)  Neither A nor B. 
A)  An organization founded and operated exclusively for public benefit. 
B)  An organization that receives more than one-third of its support from a combination of contributions, membership fees, and gross receipts from exempt activities. 
C)  Both A and B. 
D)  Neither A nor B.

Question 18

Tax-exempt entities are not allowed to make contributions to political campaigns or they may lose their tax-exempt status.

Accepted Answer

A) True 
 B)False

Question 19

A government publishes information about its fire department.What type of service efforts and accomplishments measure would Fire Loss per Capita represent?

Accepted Answer

A)  Input 
B)  Output 
C)  Outcome 
D)  Efficiency 
A)  Input 
B)  Output 
C)  Outcome 
D)  Efficiency

Question 20

What is the maximum threshold for a tax-exempt organization to file a form 990-N (electronic postcard)for tax years after 2011?

Accepted Answer

A)  A charity with gross receipts of < $25,000. 
B)  A charity with gross receipts of < $50,000. 
C)  A charity with gross receipts of < $500,000. 
D)  A charity with gross receipts of < $500,000 and total assets of < 2.5 $million. 
A)  A charity with gross receipts of < $25,000. 
B)  A charity with gross receipts of < $50,000. 
C)  A charity with gross receipts of < $500,000. 
D)  A charity with gross receipts of < $500,000 and total assets of < 2.5 $million.

The Government Accountability Office has authority for issuing Governmental Auditing Standards.

A disclaimer of opinion is the appropriate audit opinion when the auditor is not independent.

Beginning in 2012,entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $ 50,000 may file Form 990-N (electronic postcard).

What organization oversees the promulgation of Government Auditing Standards?

Tax-exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

Entities that are tax-exempt under IRS Section 501(c)3 are permitted to endorse political candidates or attempt to influence legislation.

A ratio that measures a not-for-profit organization's solvency is:

What is an "opinion unit" and what are the five opinion units for state and local governments?

Which of the following is an area of concern by the IRS with respect to tax-exempt organizations?

Government auditing standards are commonly known as:

In a disclaimer of opinion,the auditor states that no opinion is being expressed.

Assuming an auditee is considered low-risk,the auditor is required to express an opinion on compliance on major programs,which must add up to 25 percent of federal funds expended by the auditee.

Service Efforts and Accomplishments reporting is relevant because:

Which of the following is not a difference between private sector auditing and governmental auditing?

Entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $ 500,000 and total assets less than $ 2.5 million may file Form 990-EZ

A public charity is:

Tax-exempt entities are not allowed to make contributions to political campaigns or they may lose their tax-exempt status.

A government publishes information about its fire department.What type of service efforts and accomplishments measure would Fire Loss per Capita represent?

What is the maximum threshold for a tax-exempt organization to file a form 990-N (electronic postcard)for tax years after 2011?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters

Exam 13: Auditing, Tax-Exempt Organizations, and Evaluating Performance

The Government Accountability Office has authority for issuing Governmental Auditing Standards.

A disclaimer of opinion is the appropriate audit opinion when the auditor is not independent.

Beginning in 2012,entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $ 50,000 may file Form 990-N (electronic postcard).

What organization oversees the promulgation of Government Auditing Standards?

Tax-exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

Entities that are tax-exempt under IRS Section 501(c)3 are permitted to endorse political candidates or attempt to influence legislation.

A ratio that measures a not-for-profit organization's solvency is:

What is an "opinion unit" and what are the five opinion units for state and local governments?

Which of the following is an area of concern by the IRS with respect to tax-exempt organizations?

Government auditing standards are commonly known as:

In a disclaimer of opinion,the auditor states that no opinion is being expressed.

Assuming an auditee is considered low-risk,the auditor is required to express an opinion on compliance on major programs,which must add up to 25 percent of federal funds expended by the auditee.

Service Efforts and Accomplishments reporting is relevant because:

Which of the following is not a difference between private sector auditing and governmental auditing?

Entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $ 500,000 and total assets less than $ 2.5 million may file Form 990-EZ

A public charity is:

Tax-exempt entities are not allowed to make contributions to political campaigns or they may lose their tax-exempt status.

A government publishes information about its fire department.What type of service efforts and accomplishments measure would Fire Loss per Capita represent?

What is the maximum threshold for a tax-exempt organization to file a form 990-N (electronic postcard)for tax years after 2011?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters