Exam 11: Auditing of Governmental and Not-For-Profit Organizations

A certain federal agency placed an order for office supplies at an estimated cost of $14,400.Later in the same fiscal year these supplies were received at an actual cost of $14,800.Assume commitment accounting is not used by this agency.When the order is received the required journal entry (or entries)will affect the accounts shown in what net amounts?

Explain the "dual-track" accounting system used by federal agencies and why it is needed.

Identify the office,officer,or department of the United States federal government that is responsible for each of the following: A)Appropriations. B)Apportionments. C)Allotments. D)Obligations.

Explain the process of financial reporting of the U.S.Government as a whole.Does the federal government receive an unqualified audit opinion?

The Chief Financial Officer Act of 1990 establishes an office of federal financial management within the OMB,headed by a controller appointed by the President,establishes a chief financial officer position within each major federal department and agency,requires the development of a 5-year financial plan by OMB,and requires some federal agencies to provide audited financial statements.

FASAB has identified four major user groups of federal financial reports,they are

The following are key terms in Chapter 11 that relate to accounting and financial reporting for federal agencies and the federal government: A.Apportionment B.Budgetary resources C.Expended appropriation D.Governmental assets E.Heritage assets F.Intragovernmental assets G.Stewardship investments H.Stewardship land For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.

The required report or statements in the general purpose federal financial report that addresses forward-looking information regarding the possible effects of currently known demands,risks,and uncertainties,and trends in the federal entity is (are):

Compute the missing amount in the following list of proprietary accounts of a federal government agency.Show all computations legibly with labels.

The Federal Monuments Commission began operations on October 1,2011.Show in general journal form all entries that should be made in budgetary and proprietary accounts of the agency to record the following events: A.The Congress passed,and the President signed,a one-year appropriation for fiscal year 2012 for the Monuments Commission in the amount of $30,000,000. B.The OMB notified the agency of the following apportionments of the 2012 appropriation: first quarter,$8,000,000; second quarter,$8,000,000; third quarter,$7,000,000; and fourth quarter,$7,000,000. C.The Commission Director allotted $1,500,000 for the operations of October 2011. D.Commitments for goods and services not yet ordered or received were recorded in the amount of $1,300,000. E.Purchase orders and contracts for services were recorded for the month of October 2011 in the amount of $1,250,000.

Which of the following is an accurate list of the three perspectives from which the federal government can be viewed,as described in SFFAS No.2 "Entity and Display?"

Cumulative results of operations is the component of net position in a federal agency balance sheet that represents the amount of appropriations still available for obligation,or which has been obligated but not yet expended.

The Desert Conservation Agency was authorized by the United States Congress to commence operations on October 1,2011.Record the following transactions in general journal form,as they should appear in the budgetary and proprietary accounts of the agency.For each entry indicate whether it affects the budgetary accounts or the proprietary accounts. A.The agency received official notice that its one-year appropriation passed by the Congress and signed by the President amounted to $350 million for operating expenses for the fiscal year and $100 million for acquisition of capital assets during the year. B.The Office of Management and Budget notified the agency that the entire appropriation had been apportioned. C.The head of the agency allotted $75 million for the first quarter's operating expenses,and $25 million for equipment to be ordered during the first quarter. D.Purchase orders and contracts for services recorded for the first quarter totaled $90 million (the agency does not record commitments prior to placing orders or entering into contracts). E.Total expenditures for the first quarter amounted to $70 million for operating expenses and $18 million for equipment,for which an obligation in the amount of $84 million had been previously recorded (see item D above).The expenditures were all paid from fund balance with U.S.Treasury.

Which of the following is required by OMB Circular A-136 in the basic financial statements?

Which of the following accounts used in state and local government accounting is most like the federal budgetary account "Undelivered Orders"?

Describe the purpose of a management's discussion and analysis (MD&A)in the general purpose federal financial report of a federal agency.

Which of the following statements most accurately describes the dual-track accounting system used in federal agency accounting?

Describe accounting for federal social insurance programs.Comment on the adequacy of current accounting standards in this area.

Current FASAB standards distinguish intragovernmental assets from governmental assets and entity assets from nonentity assets.

The Comptroller General of the United States is the head of the: