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

Entities that are tax-exempt under Section 501(c)3 of the Internal Revenue Code do not have to pay income taxes,even if some of their activities compete with commercial enterprises.

The document often relied on for financial analysis by investors and creditors for bonds in the secondary market is:

What factors would cause income that would otherwise qualify as unrelated business income to not be taxed?

The program expense ratio is calculated as follows:

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

Which of the following activities give rise to Unrelated Business Income Tax?

Under the terms of the Single Audit Act and its amendments,what percentage of federal awards expenditures must be selected for audit?

Government Auditing Standards identify which of the following categories of professional engagements:

Which of the following would not be an opinion unit of a general purpose government?

Which of the following may be deducted in computing income from unrelated business activities?

What is the objective of the single audit process?

All of the following are examples of service outputs,except:

Government financial audits must comply with the following:

Governments and other nonprofits receiving federal funds follow Governmental Auditing Standards and do not have to comply with AICPA Statements of Auditing Standards.

Currently,a single audit is required for organizations receiving what amount of federal funds?

The purpose of audits conducted under the Single Audit Act is to provide assurance that federal and state funds are expended in accordance with grant agreements,and with financial management and other standards promulgated by the federal government.

The Single Audit 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.

List and explain the five ethical concepts outlined by the Yellow Book.

Why is Service Efforts and Accomplishments reporting especially important for governmental and not-for-profit entities?

The three major user groups identified by the GASB are (1)citizen groups,(2)legislative and oversight officials,and (3)investors and creditors.