Question 1

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

Accepted Answer

A)  A risk-based approach is used. 
B)  An opinion is required on compliance of all programs. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  A risk-based approach is used. 
B)  An opinion is required on compliance of all programs. 
C)  Both A and B above. 
D)  Neither A nor B above.

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

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

Accepted Answer

A)  Major programs selected for audit must equal 50 percent or more of federal expenditures, unless the organization is deemed to be low risk. 
B)  Separate reports are filed with every federal agency from which the audited organization receives funds. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  Major programs selected for audit must equal 50 percent or more of federal expenditures, unless the organization is deemed to be low risk. 
B)  Separate reports are filed with every federal agency from which the audited organization receives funds. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 4

In a governmental audit the auditor is only required to report to the board or audit committee.

Accepted Answer

A) True 
 B)False

Question 5

Beginning in 2012,entities that are tax-exempt under IRS Section 501(c)(3)with gross receipts less than $75,000 may file Form 990-N (electronic postcard).

Accepted Answer

A) True 
 B)False

Question 6

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 7

What is the purpose of the Unrelated Business Income Tax?

Accepted Answer

Not-for-profits performing business acti

Question 8

To apply for tax-exempt status,an organization must complete an IRS Form 1023.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Tax-exempt organizations are required to file Form 990 by the 15th day of the 9th month following the organization's taxable year.

Accepted Answer

A) True 
 B)False

Question 11

In a governmental audit the auditor is required to report directly to appropriate officials in addition to the board or audit committee.

Accepted Answer

A) True 
 B)False

Question 12

When computing Unrelated Business Income Tax,charities are permitted to deduct ordinary and necessary business related expenses and the first $1,000 of income is not taxed.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Enrollment increases. 
B)  The number of gifted or alternative programs. 
C)  Dropout rates. 
D)  Degrees conferred. 
A)  Enrollment increases. 
B)  The number of gifted or alternative programs. 
C)  Dropout rates. 
D)  Degrees conferred.

Question 14

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 15

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.

Question 16

Which of the following is not part of a financial audit?

Accepted Answer

A)  Forming judgments about internal controls 
B)  Testing compliance with laws and regulations 
C)  Providing an opinion on compliance with GAAP 
D)  Assessing the degree to which program objectives have been met 
A)  Forming judgments about internal controls 
B)  Testing compliance with laws and regulations 
C)  Providing an opinion on compliance with GAAP 
D)  Assessing the degree to which program objectives have been met

Question 17

Government financial audits must comply with the following:

Accepted Answer

A)  Generally Accepted Auditing Standards. 
B)  Government Auditing Standards. 
C)  Both A and B. 
D)  Generally Accepted Accounting Principles. 
A)  Generally Accepted Auditing Standards. 
B)  Government Auditing Standards. 
C)  Both A and B. 
D)  Generally Accepted Accounting Principles.

Question 18

What is required for an organization to qualify for tax-exempt status?

Accepted Answer

1. Have an Employer's Identification Num

Question 19

The Comprehensive Annual Financial Report of a local governmental unit includes several statements and sections. When a financial analyst is computing ratios and extracting other information,he or she needs to know where in the CAFR to look. Use the following classification to indicate where an analyst would look in the CAFR to compute the ratios and gather information by placing the appropriate letter(s)in the space next to each item. When possible,choose the location in the basic financial statements or notes that would be subject to examination:

Accepted Answer

1-d; 2-d,p; 3-i; 4-i; 5-g,p; 6

Question 20

Section 501(c)(3),exempt organizations are prohibited from supporting political candidates or campaigning to influence legislation.

Accepted Answer

A) True 
 B)False

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

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

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

In a governmental audit the auditor is only required to report to the board or audit committee.

Beginning in 2012,entities that are tax-exempt under IRS Section 501(c)(3)with gross receipts less than $75,000 may file Form 990-N (electronic postcard).

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

What is the purpose of the Unrelated Business Income Tax?

To apply for tax-exempt status,an organization must complete an IRS Form 1023.

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

Tax-exempt organizations are required to file Form 990 by the 15th day of the 9th month following the organization's taxable year.

In a governmental audit the auditor is required to report directly to appropriate officials in addition to the board or audit committee.

When computing Unrelated Business Income Tax,charities are permitted to deduct ordinary and necessary business related expenses and the first $1,000 of income is not taxed.

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

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

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

Which of the following is not part of a financial audit?

Government financial audits must comply with the following:

What is required for an organization to qualify for tax-exempt status?

Section 501(c)(3),exempt organizations are prohibited from supporting political candidates or campaigning to influence legislation.

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 Funds, Inter-fund Transactions

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

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

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

In a governmental audit the auditor is only required to report to the board or audit committee.

Beginning in 2012,entities that are tax-exempt under IRS Section 501(c)(3)with gross receipts less than $75,000 may file Form 990-N (electronic postcard).

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

What is the purpose of the Unrelated Business Income Tax?

To apply for tax-exempt status,an organization must complete an IRS Form 1023.

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

Tax-exempt organizations are required to file Form 990 by the 15th day of the 9th month following the organization's taxable year.

In a governmental audit the auditor is required to report directly to appropriate officials in addition to the board or audit committee.

When computing Unrelated Business Income Tax,charities are permitted to deduct ordinary and necessary business related expenses and the first $1,000 of income is not taxed.

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

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

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

Which of the following is not part of a financial audit?

Government financial audits must comply with the following:

What is required for an organization to qualify for tax-exempt status?

Section 501(c)(3),exempt organizations are prohibited from supporting political candidates or campaigning to influence legislation.

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 Funds, Inter-fund Transactions

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