Question 1

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

Accepted Answer

A)  Governments and not-for-profit organizations that exceed $50 million in federal awards are normally assigned a cognizant agency to provide guidance; smaller governments are expected to use oversight agencies, the agencies providing more funding than any other agency. 
B)  A risk-based approach (risk to the auditor) is used to determine which programs are selected by the auditor to audit. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Governments and not-for-profit organizations that exceed $50 million in federal awards are normally assigned a cognizant agency to provide guidance; smaller governments are expected to use oversight agencies, the agencies providing more funding than any other agency. 
B)  A risk-based approach (risk to the auditor) is used to determine which programs are selected by the auditor to audit. 
C)  Both of the above. 
D)  Neither of the above.

Question 2

The single audit requirements apply only to state and local governments.Private not-for-profits do not have to comply with these requirements,even if they receive federal grants.

Accepted Answer

A) True 
 B)False

Question 3

Entities that are tax exempt under IRS Section 501(c)3 are required to provide copies,upon request,of the three most recent Form 990 returns.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

The existence of one or more of the foll

Question 6

Form 990,Return of Organization Exempt From Income Tax,requires all of the following except:

Accepted Answer

A)  Statement of Program Accomplishments 
B)  Governance, Management and Disclosures 
C)  Compensation Schedules 
D)  Statement of Cash Flows 
A)  Statement of Program Accomplishments 
B)  Governance, Management and Disclosures 
C)  Compensation Schedules 
D)  Statement of Cash Flows

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

To qualify for tax-exempt status,an organization must do all of the following except:

Accepted Answer

A)  Have an Employer's Identification Number 
B)  Be organized as a corporation, trust, or association 
C)  Complete IRS form 1023 
D)  Receive most of its income from contributions rather than by providing goods or services 
A)  Have an Employer's Identification Number 
B)  Be organized as a corporation, trust, or association 
C)  Complete IRS form 1023 
D)  Receive most of its income from contributions rather than by providing goods or services

Question 9

The statements required to be filed on Form 990 include which of the following?

Accepted Answer

A)  Statement of Revenues, Statement of Functional Expenses and Balance Sheet 
B)  Income Statement, Balance Sheet and Statement of Cash Flows 
C)  Statement of Revenues, Statement of Operational Expenses and Balance Sheet 
D)  Statement of Revenues, Expenses and Fund Balance and Statement of Net Assets 
A)  Statement of Revenues, Statement of Functional Expenses and Balance Sheet 
B)  Income Statement, Balance Sheet and Statement of Cash Flows 
C)  Statement of Revenues, Statement of Operational Expenses and Balance Sheet 
D)  Statement of Revenues, Expenses and Fund Balance and Statement of Net Assets

Question 10

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 11

The use of opinion units allows the auditor to

Accepted Answer

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

Question 12

Which of the following are not required disclosures in a Form 990?

Accepted Answer

A)  A Statement of Functional Expense. 
B)  A discussion of program effectiveness. 
C)  A Statement of Revenues, Expenses and Changes in Net Assets. 
D)  None of the above. They are all required disclosures. 
A)  A Statement of Functional Expense. 
B)  A discussion of program effectiveness. 
C)  A Statement of Revenues, Expenses and Changes in Net Assets. 
D)  None of the above. They are all required disclosures.

Question 13

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 14

Which of the following audit opinions is issued when a government fails to comply with generally accepted accounting principles?

Accepted Answer

A)  Qualified 
B)  Adverse 
C)  Either of the above, depending on the severity of the noncompliance 
D)  Neither (a) or (b) above 
A)  Qualified 
B)  Adverse 
C)  Either of the above, depending on the severity of the noncompliance 
D)  Neither (a) or (b) above

Question 15

Tax-exempt organizations are required to file Form 990 by the 15th day of the 5th month following the organization's taxable year.

Accepted Answer

A) True 
 B)False

Question 16

If one wished to compute the net debt of a government,this could be found in the governmental fund financial statements.

Accepted Answer

A) True 
 B)False

Question 17

Service Efforts and Accomplishments reporting may be important because:

Accepted Answer

A)  SEA reporting provides more complete information about a government entity's performance than can be provided by the operating statement, balance sheet, and budgetary comparison statement which provide only incomplete information about a government's performance. 
B)  The GASB requires supplemental reporting of service efforts and accomplishments. 
C)  Enterprise fund statements do not do a good job of measuring efficiency or effectiveness. 
D)  All of the above. 
A)  SEA reporting provides more complete information about a government entity's performance than can be provided by the operating statement, balance sheet, and budgetary comparison statement which provide only incomplete information about a government's performance. 
B)  The GASB requires supplemental reporting of service efforts and accomplishments. 
C)  Enterprise fund statements do not do a good job of measuring efficiency or effectiveness. 
D)  All of the above.

Question 18

Which of the following is not a type of governmental audit?

Accepted Answer

A)  Attestation engagements 
B)  Financial Audits 
C)  Performance audits 
D)  All of the above are types of governmental audits 
A)  Attestation engagements 
B)  Financial Audits 
C)  Performance audits 
D)  All of the above are types of governmental audits

Question 19

In order to compute the ratio unreserved fund balance/revenues-General Fund,one would look in the CAFR at the:

Accepted Answer

A)  Governmental funds Balance Sheet and the Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. 
B)  Government-wide Statement of Net Assets and government-wide Statement of Activities. 
C)  Governmental funds Balance Sheet. 
D)  Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance. 
A)  Governmental funds Balance Sheet and the Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. 
B)  Government-wide Statement of Net Assets and government-wide Statement of Activities. 
C)  Governmental funds Balance Sheet. 
D)  Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance.

Question 20

Organizations exempt under section 501(c)(3)of the Internal Revenue code are required to file Form 990 or in some cases an alternate form by the 15th day of which month?

Accepted Answer

A)  The 9th month following the taxable year of the organization 
B)  The 3rd month of the calendar year 
C)  The 5th month following the taxable year of the organization 
D)  The month in which the organization originally filed 
A)  The 9th month following the taxable year of the organization 
B)  The 3rd month of the calendar year 
C)  The 5th month following the taxable year of the organization 
D)  The month in which the organization originally filed

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

The single audit requirements apply only to state and local governments.Private not-for-profits do not have to comply with these requirements,even if they receive federal grants.

Entities that are tax exempt under IRS Section 501(c)3 are required to provide copies,upon request,of the three most recent Form 990 returns.

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

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

Form 990,Return of Organization Exempt From Income Tax,requires all of the following except:

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

To qualify for tax-exempt status,an organization must do all of the following except:

The statements required to be filed on Form 990 include which of the following?

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

The use of opinion units allows the auditor to

Which of the following are not required disclosures in a Form 990?

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.

Which of the following audit opinions is issued when a government fails to comply with generally accepted accounting principles?

Tax-exempt organizations are required to file Form 990 by the 15th day of the 5th month following the organization's taxable year.

If one wished to compute the net debt of a government,this could be found in the governmental fund financial statements.

Service Efforts and Accomplishments reporting may be important because:

Which of the following is not a type of governmental audit?

In order to compute the ratio unreserved fund balance/revenues-General Fund,one would look in the CAFR at the:

Organizations exempt under section 501(c)(3)of the Internal Revenue code are required to file Form 990 or in some cases an alternate form by the 15th day of which month?

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

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?

The single audit requirements apply only to state and local governments.Private not-for-profits do not have to comply with these requirements,even if they receive federal grants.

Entities that are tax exempt under IRS Section 501(c)3 are required to provide copies,upon request,of the three most recent Form 990 returns.

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

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

Form 990,Return of Organization Exempt From Income Tax,requires all of the following except:

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

To qualify for tax-exempt status,an organization must do all of the following except:

The statements required to be filed on Form 990 include which of the following?

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

The use of opinion units allows the auditor to

Which of the following are not required disclosures in a Form 990?

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.

Which of the following audit opinions is issued when a government fails to comply with generally accepted accounting principles?

Tax-exempt organizations are required to file Form 990 by the 15th day of the 5th month following the organization's taxable year.

If one wished to compute the net debt of a government,this could be found in the governmental fund financial statements.

Service Efforts and Accomplishments reporting may be important because:

Which of the following is not a type of governmental audit?

In order to compute the ratio unreserved fund balance/revenues-General Fund,one would look in the CAFR at the:

Organizations exempt under section 501(c)(3)of the Internal Revenue code are required to file Form 990 or in some cases an alternate form by the 15th day of which month?

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters