Question 1

Describe the types of audit opinions that may be issued on a governmental or not-for-profit financial report.

Accepted Answer

(a)Unqualified - indicates that the fina

Question 2

While the Sarbanes-Oxley Act applies to corporations filing with the Securities and Exchange Commission,several provisions of the Act already existed in governmental auditing standards and now are also mandated for not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 3

The Government Accounting Standards Board has authority for issuing Governmental Auditing Standards,but not auditing standards for private companies and not-for-profits.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

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

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

Accepted Answer

A)  Governmental activities 
B)  Business-type activities 
C)  Each Major Fund 
D)  All of the above are opinion units 
A)  Governmental activities 
B)  Business-type activities 
C)  Each Major Fund 
D)  All of the above are opinion units

Question 8

Which of the following items,helpful for analysis,could be found in the statistical section of the CAFR?

Accepted Answer

A)  Assessed and actual (market) value of property. 
B)  Population trends. 
C)  Debt limit and margin. 
D)  All of the above. 
A)  Assessed and actual (market) value of property. 
B)  Population trends. 
C)  Debt limit and margin. 
D)  All of the above.

Question 9

The program expense ratio is calculated as Program service expenses / Total expenses.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Tax-exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

What is not an 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)  The charitable organization does not have to pay state sales tax. 
D)  Neither (
A)  nor (
C)  is an advantage. 
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)  The charitable organization does not have to pay state sales tax. 
D)  Neither (
A)  nor (
C)  is an advantage.

Question 15

Which of the following would be considered a performance audit under the Government Auditing Standards?

Accepted Answer

A)  An investigation into whether a purchasing department of a government was operated efficiently. 
B)  An investigation into whether a social service agency of a state government improved the lives of its clients. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  An investigation into whether a purchasing department of a government was operated efficiently. 
B)  An investigation into whether a social service agency of a state government improved the lives of its clients. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

Entities that are tax-exempt under IRS Section 501(c)(3)with gross receipts less than $ 500,000 and total assets less than $ 2.5 million may file Form 990-EZ

Accepted Answer

A) True 
 B)False

Question 18

Which of the following would be an example of an attestation engagement?

Accepted Answer

A)  Report on cost under contract 
B)  Report on prospective financial information 
C)  Report on internal controls 
D)  All of the above 
A)  Report on cost under contract 
B)  Report on prospective financial information 
C)  Report on internal controls 
D)  All of the above

Question 19

Service Efforts and Accomplishments Reporting includes measures of service inputs,outputs and outcomes.

Accepted Answer

A) True 
 B)False

Question 20

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

Describe the types of audit opinions that may be issued on a governmental or not-for-profit financial report.

While the Sarbanes-Oxley Act applies to corporations filing with the Securities and Exchange Commission,several provisions of the Act already existed in governmental auditing standards and now are also mandated for not-for-profit organizations.

The Government Accounting Standards Board has authority for issuing Governmental Auditing Standards,but not auditing standards for private companies and not-for-profits.

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

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

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

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

Which of the following items,helpful for analysis,could be found in the statistical section of the CAFR?

The program expense ratio is calculated as Program service expenses / Total expenses.

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

Tax-exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

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

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

What is not an advantage of obtaining section 501(c)(3)status?

Which of the following would be considered a performance audit under the Government Auditing Standards?

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.

Entities that are tax-exempt under IRS Section 501(c)(3)with gross receipts less than $ 500,000 and total assets less than $ 2.5 million may file Form 990-EZ

Which of the following would be an example of an attestation engagement?

Service Efforts and Accomplishments Reporting includes measures of service inputs,outputs and outcomes.

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

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

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

Describe the types of audit opinions that may be issued on a governmental or not-for-profit financial report.

While the Sarbanes-Oxley Act applies to corporations filing with the Securities and Exchange Commission,several provisions of the Act already existed in governmental auditing standards and now are also mandated for not-for-profit organizations.

The Government Accounting Standards Board has authority for issuing Governmental Auditing Standards,but not auditing standards for private companies and not-for-profits.

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

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

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

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

Which of the following items,helpful for analysis,could be found in the statistical section of the CAFR?

The program expense ratio is calculated as Program service expenses / Total expenses.

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

Tax-exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

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

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

What is not an advantage of obtaining section 501(c)(3)status?

Which of the following would be considered a performance audit under the Government Auditing Standards?

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.

Entities that are tax-exempt under IRS Section 501(c)(3)with gross receipts less than $ 500,000 and total assets less than $ 2.5 million may file Form 990-EZ

Which of the following would be an example of an attestation engagement?

Service Efforts and Accomplishments Reporting includes measures of service inputs,outputs and outcomes.

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

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

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