Question 1

Which of the following provisions of the Sarbanes-Oxley Act already existed in governmental auditing standards?

Accepted Answer

A)  Auditors are required to report deficiencies in the design or operation of internal controls. 
B)  Not-for-profit organizations are required to establish audit committees composed of non-management board members. 
C)  All nonaudit services performed by the auditors must be approved by the audit committee. 
D)  All of the above. 
A)  Auditors are required to report deficiencies in the design or operation of internal controls. 
B)  Not-for-profit organizations are required to establish audit committees composed of non-management board members. 
C)  All nonaudit services performed by the auditors must be approved by the audit committee. 
D)  All of the above.

Question 2

Governmental attestation engagements must comply with the Government Auditing Standards but are exempt from compliance with the AICPA's attestation standards.

Accepted Answer

A) True 
 B)False

Question 3

To qualify for tax-exempt status,an organization must do all of the following except:

Accepted Answer

A)  Have an Employer's Identification Number. 
B)  Be organized as a corporation, trust, or association. 
C)  Complete IRS form 1023. 
D)  Receive most of its income from contributions rather than by providing goods or services. 
A)  Have an Employer's Identification Number. 
B)  Be organized as a corporation, trust, or association. 
C)  Complete IRS form 1023. 
D)  Receive most of its income from contributions rather than by providing goods or services.

Question 4

If one wished to compute the net debt of a government,this could be found in the governmental fund financial statements.

Accepted Answer

A) True 
 B)False

Question 5

Public sector audits differ from those of commercial businesses in which of the following ways?

Accepted Answer

A)  The auditor is not required to be independent. 
B)  The auditor reports to outside agencies as well as management of the organization. 
C)  The auditor does not use sampling 
D)  All of the above. 
A)  The auditor is not required to be independent. 
B)  The auditor reports to outside agencies as well as management of the organization. 
C)  The auditor does not use sampling 
D)  All of the above.

Question 6

The use of opinion units allows an auditor to issue different opinions on different statements,instead of issuing a single opinion.

Accepted Answer

A) True 
 B)False

Question 7

To compute the unassigned fund balance/revenues-General Fund,one would need to look in the CAFR for the:

Accepted Answer

A)  Governmental funds Balance Sheet. 
B)  Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  Governmental funds Balance Sheet. 
B)  Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 8

To apply for tax-exempt status,a non-profit organization must file:

Accepted Answer

A)  IRS Form 501(c)(3). 
B)  IRS Form 990. 
C)  IRS Form 1023. 
D)  None of the above. 
A)  IRS Form 501(c)(3). 
B)  IRS Form 990. 
C)  IRS Form 1023. 
D)  None of the above.

Question 9

What is the purpose of the Unrelated Business Income Tax?

Accepted Answer

Not-for-profits performing business acti

Question 10

Fund-raising efficiency is a measure of performance that expresses how much an organization spends in raising a dollar of donations.

Accepted Answer

A) True 
 B)False

Question 11

Governmental attestation engagements must comply with both the Government Auditing Standards and with the AICPA's attestation standards.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not true of Tax-exempt Entities having 501(c)(3)status?

Accepted Answer

A)  Donors to the organization may deduct their contributions as charitable donations. 
B)  Churches and public charities with tax-exempt status must file an information return (Form 990, 990EZ or 990-N) with the IRS annually. 
C)  Tax-exempt entities are prohibited from certain activities such as supporting political candidates. 
D)  None of the above, these are all true of tax-exempt entities. 
A)  Donors to the organization may deduct their contributions as charitable donations. 
B)  Churches and public charities with tax-exempt status must file an information return (Form 990, 990EZ or 990-N) with the IRS annually. 
C)  Tax-exempt entities are prohibited from certain activities such as supporting political candidates. 
D)  None of the above, these are all true of tax-exempt entities.

Question 13

What is the principal advantage to an organization of having 501(c)(3)status?

Accepted Answer

A)  The organization does not have to pay federal income tax. 
B)  The organization does not have to pay state sales taxes on purchases. 
C)  Donors to the organization may deduct their contributions as charitable donations. 
D)  All of the above. 
A)  The organization does not have to pay federal income tax. 
B)  The organization does not have to pay state sales taxes on purchases. 
C)  Donors to the organization may deduct their contributions as charitable donations. 
D)  All of the above.

Question 14

Bonds which carry the full faith and credit of a government are called general obligation bonds.

Accepted Answer

A) True 
 B)False

Question 15

The program expense ratio for a not-for-profit organization will improve if the organization shifts costs from fund-raising to program expenses.

Accepted Answer

A) True 
 B)False

Question 16

Government Auditing Standards,published in a document called the Yellow Book,incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities.Which of the following is not one of the extensions?

Accepted Answer

A)  Higher materiality thresholds than in the private sector. 
B)  Public availability of audit reports. 
C)  Written evaluation of internal controls. 
D)  Requirement that auditors have knowledge of government accounting and auditing. 
A)  Higher materiality thresholds than in the private sector. 
B)  Public availability of audit reports. 
C)  Written evaluation of internal controls. 
D)  Requirement that auditors have knowledge of government accounting and auditing.

Question 17

Tax-exempt organizations are required to disclose the compensation of its officers,directors,trustees,highest paid employees and independent contractors in the Form 990.

Accepted Answer

A) True 
 B)False

Question 18

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996?
 Distinguish between Type A and Type B programs.

Accepted Answer

A major program is one that is selected

Question 19

A measure of performance that expresses how much an organization expends in raising a dollar of donations is:

Accepted Answer

A)  Fund-raising efficiency. 
B)  Program expense ratio. 
C)  Working capital ratio. 
D)  None of the above. 
A)  Fund-raising efficiency. 
B)  Program expense ratio. 
C)  Working capital ratio. 
D)  None of the above.

Question 20

Bonds which carry the full faith and credit of a government are called revenue bonds.

Accepted Answer

A) True 
 B)False

Which of the following provisions of the Sarbanes-Oxley Act already existed in governmental auditing standards?

Governmental attestation engagements must comply with the Government Auditing Standards but are exempt from compliance with the AICPA's attestation standards.

To qualify for tax-exempt status,an organization must do all of the following except:

If one wished to compute the net debt of a government,this could be found in the governmental fund financial statements.

Public sector audits differ from those of commercial businesses in which of the following ways?

The use of opinion units allows an auditor to issue different opinions on different statements,instead of issuing a single opinion.

To compute the unassigned fund balance/revenues-General Fund,one would need to look in the CAFR for the:

To apply for tax-exempt status,a non-profit organization must file:

What is the purpose of the Unrelated Business Income Tax?

Fund-raising efficiency is a measure of performance that expresses how much an organization spends in raising a dollar of donations.

Governmental attestation engagements must comply with both the Government Auditing Standards and with the AICPA's attestation standards.

Which of the following is not true of Tax-exempt Entities having 501(c)(3)status?

What is the principal advantage to an organization of having 501(c)(3)status?

Bonds which carry the full faith and credit of a government are called general obligation bonds.

The program expense ratio for a not-for-profit organization will improve if the organization shifts costs from fund-raising to program expenses.

Government Auditing Standards,published in a document called the Yellow Book,incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities.Which of the following is not one of the extensions?

Tax-exempt organizations are required to disclose the compensation of its officers,directors,trustees,highest paid employees and independent contractors in the Form 990.

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996? Distinguish between Type A and Type B programs.

A measure of performance that expresses how much an organization expends in raising a dollar of donations is:

Bonds which carry the full faith and credit of a government are called revenue bonds.

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

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

Which of the following provisions of the Sarbanes-Oxley Act already existed in governmental auditing standards?

Governmental attestation engagements must comply with the Government Auditing Standards but are exempt from compliance with the AICPA's attestation standards.

To qualify for tax-exempt status,an organization must do all of the following except:

If one wished to compute the net debt of a government,this could be found in the governmental fund financial statements.

Public sector audits differ from those of commercial businesses in which of the following ways?

The use of opinion units allows an auditor to issue different opinions on different statements,instead of issuing a single opinion.

To compute the unassigned fund balance/revenues-General Fund,one would need to look in the CAFR for the:

To apply for tax-exempt status,a non-profit organization must file:

What is the purpose of the Unrelated Business Income Tax?

Fund-raising efficiency is a measure of performance that expresses how much an organization spends in raising a dollar of donations.

Governmental attestation engagements must comply with both the Government Auditing Standards and with the AICPA's attestation standards.

Which of the following is not true of Tax-exempt Entities having 501(c)(3)status?

What is the principal advantage to an organization of having 501(c)(3)status?

Bonds which carry the full faith and credit of a government are called general obligation bonds.

The program expense ratio for a not-for-profit organization will improve if the organization shifts costs from fund-raising to program expenses.

Government Auditing Standards,published in a document called the Yellow Book,incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities.Which of the following is not one of the extensions?

Tax-exempt organizations are required to disclose the compensation of its officers,directors,trustees,highest paid employees and independent contractors in the Form 990.

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996? Distinguish between Type A and Type B programs.

A measure of performance that expresses how much an organization expends in raising a dollar of donations is:

Bonds which carry the full faith and credit of a government are called revenue bonds.

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