Question 1

Which organization promulgates the Government Auditing Standards?

Accepted Answer

A)  The American Institute of Certified Public Accountants. 
B)  The U.S. Office of Management and Budget. 
C)  The U.S. Government Accountability Office. 
D)  The U.S. Congressional Budget Office. 
A)  The American Institute of Certified Public Accountants. 
B)  The U.S. Office of Management and Budget. 
C)  The U.S. Government Accountability Office. 
D)  The U.S. Congressional Budget Office.

Question 2

Which of the following is true regarding Service Efforts and Accomplishments Reporting?

Accepted Answer

A)  SEA reporting utilizes both financial and non-financial performance measures. 
B)  GASB standards require the reporting of service efforts and accomplishments for public school systems. 
C)  Service efforts and accomplishments reporting is commonly covered by the auditor's opinion. 
D)  All of the above. 
A)  SEA reporting utilizes both financial and non-financial performance measures. 
B)  GASB standards require the reporting of service efforts and accomplishments for public school systems. 
C)  Service efforts and accomplishments reporting is commonly covered by the auditor's opinion. 
D)  All of the above.

Question 3

Entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $500,000 may file Form 990-N (electronic postcard).

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Service Efforts and Accomplishments Reporting is limited to financial measures such as revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a governmental audit type that has a primary concern with providing reasonable assurance about whether financial statements are presented fairly?

Accepted Answer

A)  Attestation Engagement. 
B)  Performance Audit. 
C)  Financial Audit. 
D)  Nonaudit services. 
A)  Attestation Engagement. 
B)  Performance Audit. 
C)  Financial Audit. 
D)  Nonaudit services.

Question 7

Assume the mission statement for the City Fire Department is as follows:
To minimize the combined cost of fire prevention and fire loss.
Give an example of Input,Output,Outcome,and Efficiency measures that might be used in Service Efforts and Accomplishments Reporting.

Accepted Answer

(a)Input measures - Dollars expended for

Question 8

Which of the following is true regarding the Single Audit Act and its amendments?

Accepted Answer

A)  All governmental entities with expenditures of federal funds in excess of $500,000 must have a single audit, if more than one program exists. 
B)  An audit must be designed to cover 25 percent of federal funds expended, unless the organization is deemed to be low risk. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  All governmental entities with expenditures of federal funds in excess of $500,000 must have a single audit, if more than one program exists. 
B)  An audit must be designed to cover 25 percent of federal funds expended, unless the organization is deemed to be low risk. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 9

To compute the operating ratio-enterprise funds,one would need to look in the CAFR for the:

Accepted Answer

A)  Government-wide Statement of Net Assets. 
B)  Proprietary funds Statement of Revenues, Expenses, and Changes in Fund Net Assets. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  Government-wide Statement of Net Assets. 
B)  Proprietary funds Statement of Revenues, Expenses, and Changes in Fund Net Assets. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 10

The Sarbanes Oxley Act is intended to provide assurance to the federal government that federal funds are protected through a system of internal controls and sound financial management practices.

Accepted Answer

A) True 
 B)False

Question 11

Service Efforts and Accomplishments Reporting is voluntary for not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 12

What is the principle advantage of obtaining section 501(c)3 status?

Accepted Answer

A)  The charitable organization is permitted to engage in a trade or business unrelated to its mission without having to pay income taxes. 
B)  Donors to the charitable organization are permitted to deduct contributions to the organization in computing their income taxes. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above. 
A)  The charitable organization is permitted to engage in a trade or business unrelated to its mission without having to pay income taxes. 
B)  Donors to the charitable organization are permitted to deduct contributions to the organization in computing their income taxes. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above.

Question 13

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the three most recent annual form 990s.

Accepted Answer

A) True 
 B)False

Question 14

Supporting expenses are included in the denominator of the program expense ratio.

Accepted Answer

A) True 
 B)False

Question 15

If a tax-exempt organization is found by the IRS to have paid excessive benefits,the organization must pay a tax penalty of 25% of the excess benefit and the employee must pay a 10% penalty,but the employee is entitled to keep the benefits.

Accepted Answer

A) True 
 B)False

Question 16

Governmental Audit Reports are due nine months after the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 17

List four sources of income that are not subject to the unrelated business income tax.

Accepted Answer

Any four of the following:
(a)The busine

Question 18

Which of the following is a prohibited activity for a Tax-exempt Organization?

Accepted Answer

A)  Make a Profit. 
B)  File a tax return. 
C)  Give money away. 
D)  Make financial contributions to a political candidate. 
A)  Make a Profit. 
B)  File a tax return. 
C)  Give money away. 
D)  Make financial contributions to a political candidate.

Question 19

The use of opinion units allows the auditor to

Accepted Answer

A)  Only allow one opinion for entire entity not its components. 
B)  Provide different opinions on different components of the reporting entity. 
C)  Plan the audit better and increase the effectiveness of substantive procedures. 
D)  Eliminate the need for Test of Controls. 
A)  Only allow one opinion for entire entity not its components. 
B)  Provide different opinions on different components of the reporting entity. 
C)  Plan the audit better and increase the effectiveness of substantive procedures. 
D)  Eliminate the need for Test of Controls.

Question 20

Which of the following is true regarding the Single Audit Act and its amendments?

Accepted Answer

A)  An auditor is expected to express an opinion on "major programs," which are chosen based on size. 
B)  An auditor is required to select all "Type A" programs as major programs. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  An auditor is expected to express an opinion on "major programs," which are chosen based on size. 
B)  An auditor is required to select all "Type A" programs as major programs. 
C)  Both A and B above. 
D)  Neither A nor B above.

Which organization promulgates the Government Auditing Standards?

Which of the following is true regarding Service Efforts and Accomplishments Reporting?

Entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $500,000 may file Form 990-N (electronic postcard).

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

Service Efforts and Accomplishments Reporting is limited to financial measures such as revenues and expenses.

Which of the following is a governmental audit type that has a primary concern with providing reasonable assurance about whether financial statements are presented fairly?

Assume the mission statement for the City Fire Department is as follows: To minimize the combined cost of fire prevention and fire loss. Give an example of Input,Output,Outcome,and Efficiency measures that might be used in Service Efforts and Accomplishments Reporting.

Which of the following is true regarding the Single Audit Act and its amendments?

To compute the operating ratio-enterprise funds,one would need to look in the CAFR for the:

The Sarbanes Oxley Act is intended to provide assurance to the federal government that federal funds are protected through a system of internal controls and sound financial management practices.

Service Efforts and Accomplishments Reporting is voluntary for not-for-profit organizations.

What is the principle advantage of obtaining section 501(c)3 status?

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the three most recent annual form 990s.

Supporting expenses are included in the denominator of the program expense ratio.

If a tax-exempt organization is found by the IRS to have paid excessive benefits,the organization must pay a tax penalty of 25% of the excess benefit and the employee must pay a 10% penalty,but the employee is entitled to keep the benefits.

Governmental Audit Reports are due nine months after the end of the fiscal year.

List four sources of income that are not subject to the unrelated business income tax.

Which of the following is a prohibited activity for a Tax-exempt Organization?

The use of opinion units allows the auditor to

Which of the following is true regarding the Single Audit Act and its amendments?

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

Which organization promulgates the Government Auditing Standards?

Which of the following is true regarding Service Efforts and Accomplishments Reporting?

Entities that are tax-exempt under IRS Section 501(c)3 with gross receipts less than $500,000 may file Form 990-N (electronic postcard).

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

Service Efforts and Accomplishments Reporting is limited to financial measures such as revenues and expenses.

Which of the following is a governmental audit type that has a primary concern with providing reasonable assurance about whether financial statements are presented fairly?

Assume the mission statement for the City Fire Department is as follows: To minimize the combined cost of fire prevention and fire loss. Give an example of Input,Output,Outcome,and Efficiency measures that might be used in Service Efforts and Accomplishments Reporting.

Which of the following is true regarding the Single Audit Act and its amendments?

To compute the operating ratio-enterprise funds,one would need to look in the CAFR for the:

The Sarbanes Oxley Act is intended to provide assurance to the federal government that federal funds are protected through a system of internal controls and sound financial management practices.

Service Efforts and Accomplishments Reporting is voluntary for not-for-profit organizations.

What is the principle advantage of obtaining section 501(c)3 status?

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the three most recent annual form 990s.

Supporting expenses are included in the denominator of the program expense ratio.

If a tax-exempt organization is found by the IRS to have paid excessive benefits,the organization must pay a tax penalty of 25% of the excess benefit and the employee must pay a 10% penalty,but the employee is entitled to keep the benefits.

Governmental Audit Reports are due nine months after the end of the fiscal year.

List four sources of income that are not subject to the unrelated business income tax.

Which of the following is a prohibited activity for a Tax-exempt Organization?

The use of opinion units allows the auditor to

Which of the following is true regarding the Single Audit Act and its amendments?

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