Question 1

In a governmental audit the auditor:

Accepted Answer

A)  Is required to report directly to appropriate officials in addition to the board or audit committee 
B)  Is only required to report to the board or audit committee 
C)  Is only required to report directly to the appropriate officials 
D)  None of the above 
A)  Is required to report directly to appropriate officials in addition to the board or audit committee 
B)  Is only required to report to the board or audit committee 
C)  Is only required to report directly to the appropriate officials 
D)  None of the above

Question 2

Governmental Auditing Standards identifies four categories of professional engagements:
 financial audits,performance audits,attestation engagements,and non-audit services.

Accepted Answer

A) True 
 B)False

Question 3

In order to compute the interest coverage on revenue bonds,one would look in the CAFR at the:

Accepted Answer

A)  Government-wide Statement of Activities. 
B)  Government-wide Statement of Activities 
C)  Budgetary Comparison Schedule. 
D)  Enterprise funds Statement of Revenues, Expenses, and Changes in Net Assets. 
A)  Government-wide Statement of Activities. 
B)  Government-wide Statement of Activities 
C)  Budgetary Comparison Schedule. 
D)  Enterprise funds Statement of Revenues, Expenses, and Changes in Net Assets.

Question 4

The program expense ratio is calculated as (Program service expenses + supporting service expenses)/ Total expenses.

Accepted Answer

A) True 
 B)False

Question 5

To compute the net debt per capita,a user of financial statements would need to look at (in the CAFR):

Accepted Answer

A)  the government-wide Statement of Net Assets and the population from the statistical section. . 
B)  the debt and the amount available to pay that debt in the governmental funds Balance Sheet, and the population from the statistical section. 
C)  the debt in the governmental funds Balance Sheet, the amount available in the government-wide Statement of Net Assets, and the population from the statistical section. 
D)  the debt in the government-wide Statement of Net Assets, the amount available to pay that debt in the governmental funds Balance Sheet, and the population from the statistical section. 
A)  the government-wide Statement of Net Assets and the population from the statistical section. . 
B)  the debt and the amount available to pay that debt in the governmental funds Balance Sheet, and the population from the statistical section. 
C)  the debt in the governmental funds Balance Sheet, the amount available in the government-wide Statement of Net Assets, and the population from the statistical section. 
D)  the debt in the government-wide Statement of Net Assets, the amount available to pay that debt in the governmental funds Balance Sheet, and the population from the statistical section.

Question 6

The term "opinion unit" refers to which of the following:

Accepted Answer

A)  A division of a CPA firm 
B)  A state or local government together with its component units 
C)  A level of reporting of a government that requires a separate materiality level 
D)  One of the four statements required in the second paragraph of an unqualified audit opinion 
A)  A division of a CPA firm 
B)  A state or local government together with its component units 
C)  A level of reporting of a government that requires a separate materiality level 
D)  One of the four statements required in the second paragraph of an unqualified audit opinion

Question 7

Service Efforts and Accomplishments Reporting is best completed by using

Accepted Answer

A)  A standard single measure to evaluate or present information. 
B)  A variety of measures which vary from year to year in order to evaluate and present information. 
C)  Only the information that is favorable to the organization. 
D)  A variety of measures which are consistent from year to year. 
A)  A standard single measure to evaluate or present information. 
B)  A variety of measures which vary from year to year in order to evaluate and present information. 
C)  Only the information that is favorable to the organization. 
D)  A variety of measures which are consistent from year to year.

Question 8

Service Efforts and Accomplishments Reporting is intended to communicate information about the effectiveness of governmental services.

Accepted Answer

A) True 
 B)False

Question 9

Entities that are tax-exempt under IRS Section 501(c)3 are prohibited from having surpluses (revenues exceed expenses).

Accepted Answer

A) True 
 B)False

Question 10

Which type of audit opinion is appropriate if an auditor is not deemed to be independent?

Accepted Answer

A)  Disclaimer of opinion. 
B)  Unqualified. 
C)  Qualified. 
D)  Adverse. 
A)  Disclaimer of opinion. 
B)  Unqualified. 
C)  Qualified. 
D)  Adverse.

Question 11

Government financial audits are subject to both GAAS and GAGAS.

Accepted Answer

A) True 
 B)False

In a governmental audit the auditor:

Governmental Auditing Standards identifies four categories of professional engagements: financial audits,performance audits,attestation engagements,and non-audit services.

In order to compute the interest coverage on revenue bonds,one would look in the CAFR at the:

The program expense ratio is calculated as (Program service expenses + supporting service expenses)/ Total expenses.

To compute the net debt per capita,a user of financial statements would need to look at (in the CAFR):

The term "opinion unit" refers to which of the following:

Service Efforts and Accomplishments Reporting is best completed by using

Service Efforts and Accomplishments Reporting is intended to communicate information about the effectiveness of governmental services.

Entities that are tax-exempt under IRS Section 501(c)3 are prohibited from having surpluses (revenues exceed expenses).

Which type of audit opinion is appropriate if an auditor is not deemed to be independent?

Government financial audits are subject to both GAAS and GAGAS.

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

In a governmental audit the auditor:

Governmental Auditing Standards identifies four categories of professional engagements: financial audits,performance audits,attestation engagements,and non-audit services.

In order to compute the interest coverage on revenue bonds,one would look in the CAFR at the:

The program expense ratio is calculated as (Program service expenses + supporting service expenses)/ Total expenses.

To compute the net debt per capita,a user of financial statements would need to look at (in the CAFR):

The term "opinion unit" refers to which of the following:

Service Efforts and Accomplishments Reporting is best completed by using

Service Efforts and Accomplishments Reporting is intended to communicate information about the effectiveness of governmental services.

Entities that are tax-exempt under IRS Section 501(c)3 are prohibited from having surpluses (revenues exceed expenses).

Which type of audit opinion is appropriate if an auditor is not deemed to be independent?

Government financial audits are subject to both GAAS and GAGAS.

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