Question 1

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 2

Which of the following is  notprohibited of organizations receiving tax-exempt status under IRS Section 501c3?

Accepted Answer

A)  Earning a profit increase in net assets. 
B)  Distributing earnings to the benefit of members or officers. 
C)  Endorsing political candidates or attempting to influence legislation. 
D)  None of the above. All of these are prohibited of . 
A)  Earning a profit increase in net assets. 
B)  Distributing earnings to the benefit of members or officers. 
C)  Endorsing political candidates or attempting to influence legislation. 
D)  None of the above. All of these are prohibited of .

Question 3

Government Auditing Standards identify which of the following categories of professional engagements:

Accepted Answer

A)  Financial audits. 
B)  Financial audits and performance audits. 
C)  Financial audits, agreed-upon procedures and performance audits. 
D)  Financial audits, attestation engagements, performance audits, and nonaudit services. 
A)  Financial audits. 
B)  Financial audits and performance audits. 
C)  Financial audits, agreed-upon procedures and performance audits. 
D)  Financial audits, attestation engagements, performance audits, and nonaudit services.

Question 4

Government Auditing Standards, published in a document called the Yellow Book, incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities. Which of the following is not one of the extensions?

Accepted Answer

A)  Public availability of audit reports. 
B)  Written evaluation of internal controls. 
C)  Higher materiality thresholds than in the private sector. 
D)  Requirement that auditors have knowledge of government accounting and auditing. 
A)  Public availability of audit reports. 
B)  Written evaluation of internal controls. 
C)  Higher materiality thresholds than in the private sector. 
D)  Requirement that auditors have knowledge of government accounting and auditing.

Question 5

Entities that are tax-exempt under Section 501c3 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 6

Which of the following activities give rise to Unrelated Business Income Tax?

Accepted Answer

A)  Investment income arising from investment of unrestricted funds. 
B)  Business operated for the convenience of employees and patients. 
C)  Sale of donated merchandise. 
D)  None of the above. 
A)  Investment income arising from investment of unrestricted funds. 
B)  Business operated for the convenience of employees and patients. 
C)  Sale of donated merchandise. 
D)  None of the above.

Question 7

Assuming an auditee is not considered low-risk, the auditor is required to express an opinion on compliance on major programs, which must add up to 50 percent of federal funds expended by the auditee.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

Which of the following is  not considered to be a major user group by the GASB?

Accepted Answer

A)  Citizen groups. 
B)  Investors and creditors. 
C)  Government executive branch officials. 
D)  Legislative and oversight officials. 
A)  Citizen groups. 
B)  Investors and creditors. 
C)  Government executive branch officials. 
D)  Legislative and oversight officials.

Question 11

To compute the Financial Position-General Fund ratio, one would need to look in the CAFR for the:

Accepted Answer

A)  Governmental funds Balance Sheet. 
B)  Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  Governmental funds Balance Sheet. 
B)  Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 12

Describe each of the following different types of governmental audit and attestation engagements.
F1F1F1S1F1F1F10Financial audits
F1F1F1S1F1F1F10Attestation engagements
F1F1F1S1F1F1F10Performance audits
F1F1F1S1F1F1F10Nonaudit services

Accepted Answer

a) Financial audits primarily concern pr

Question 13

The IRS announced that it considers to be one of its four highest enforcement priorities. What are the three areas of concern for the IRS?

Accepted Answer

1. Cost allocations
2. Excess

Question 14

Bonds which carry the full faith and credit of a government are called revenue bonds.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The Sarbanes Oxley Act is intended to improve corporate governance and limit the services accounting firms may provide to their audit clients.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following are the four categories of professional engagements that the Government Auditing Standards identifies?

Accepted Answer

A)  Financial audits, attestation engagements, performance audits, and nonaudit services. 
B)  Preparation of financial statements, attestation engagements, performance audits and financial audits. 
C)  Financial statement preparation, consulting, performance audits, and financial audits. 
D)  Financial statement preparation, financial audits, performance audits and preparation of financial statements. 
A)  Financial audits, attestation engagements, performance audits, and nonaudit services. 
B)  Preparation of financial statements, attestation engagements, performance audits and financial audits. 
C)  Financial statement preparation, consulting, performance audits, and financial audits. 
D)  Financial statement preparation, financial audits, performance audits and preparation of financial statements.

Question 18

A public charity is:

Accepted Answer

A)  An organization founded and operated exclusively for public safety. 
B)  An organization that receives more than one-third of its support from a combination of contributions, membership fees, and gross receipts from exempt activities. 
C)  An organization operated exclusively for the benefit of a church. 
D)  All of the above are considered to be public charities. 
A)  An organization founded and operated exclusively for public safety. 
B)  An organization that receives more than one-third of its support from a combination of contributions, membership fees, and gross receipts from exempt activities. 
C)  An organization operated exclusively for the benefit of a church. 
D)  All of the above are considered to be public charities.

Question 19

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

Accepted Answer

A)  An auditor is expected to express an opinion on "major programs," which are chosen based on size. 
B)  An auditor is required to select all "Type A" programs as major programs. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  An auditor is expected to express an opinion on "major programs," which are chosen based on size. 
B)  An auditor is required to select all "Type A" programs as major programs. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 20

The classification of Net Assets in the Form 990 for are consistent with FASB standards for not-for-profit organizations.

Accepted Answer

A) True 
 B)False

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

Which of the following is notprohibited of organizations receiving tax-exempt status under IRS Section 501c3?

Government Auditing Standards identify which of the following categories of professional engagements:

Government Auditing Standards, published in a document called the Yellow Book, incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities. Which of the following is not one of the extensions?

Entities that are tax-exempt under Section 501c3 of the Internal Revenue Code do not have to pay income taxes, even if some of their activities compete with commercial enterprises.

Which of the following activities give rise to Unrelated Business Income Tax?

Assuming an auditee is not considered low-risk, the auditor is required to express an opinion on compliance on major programs, which must add up to 50 percent of federal funds expended by the auditee.

In a governmental audit the auditor:

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

Which of the following is not considered to be a major user group by the GASB?

To compute the Financial Position-General Fund ratio, one would need to look in the CAFR for the:

Describe each of the following different types of governmental audit and attestation engagements. Financial audits Attestation engagements Performance audits Nonaudit services

The IRS announced that it considers to be one of its four highest enforcement priorities. What are the three areas of concern for the IRS?

Bonds which carry the full faith and credit of a government are called revenue bonds.

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

The Sarbanes Oxley Act is intended to improve corporate governance and limit the services accounting firms may provide to their audit clients.

Which of the following are the four categories of professional engagements that the Government Auditing Standards identifies?

A public charity is:

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

The classification of Net Assets in the Form 990 for are consistent with FASB standards for not-for-profit organizations.

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, Interfund Transactions

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

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

Which of the following is notprohibited of organizations receiving tax-exempt status under IRS Section 501c3?

Government Auditing Standards identify which of the following categories of professional engagements:

Government Auditing Standards, published in a document called the Yellow Book, incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities. Which of the following is not one of the extensions?

Entities that are tax-exempt under Section 501c3 of the Internal Revenue Code do not have to pay income taxes, even if some of their activities compete with commercial enterprises.

Which of the following activities give rise to Unrelated Business Income Tax?

Assuming an auditee is not considered low-risk, the auditor is required to express an opinion on compliance on major programs, which must add up to 50 percent of federal funds expended by the auditee.

In a governmental audit the auditor:

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

Which of the following is not considered to be a major user group by the GASB?

To compute the Financial Position-General Fund ratio, one would need to look in the CAFR for the:

Describe each of the following different types of governmental audit and attestation engagements. Financial audits Attestation engagements Performance audits Nonaudit services

The IRS announced that it considers to be one of its four highest enforcement priorities. What are the three areas of concern for the IRS?

Bonds which carry the full faith and credit of a government are called revenue bonds.

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

The Sarbanes Oxley Act is intended to improve corporate governance and limit the services accounting firms may provide to their audit clients.

Which of the following are the four categories of professional engagements that the Government Auditing Standards identifies?

A public charity is:

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

The classification of Net Assets in the Form 990 for are consistent with FASB standards for not-for-profit organizations.

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, Interfund Transactions

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