Question 1

The program expense ratio is calculated as follows: Total expenses / Program service expenses + supporting service expenses.

Accepted Answer

A) True 
 B)False

Question 2

Explain what is meant by each of the five ethical concepts outlined by the Yellow Book.
F1F1F1S1F1F1F10Public interest
F1F1F1S1F1F1F10Integrity
F1F1F1S1F1F1F10Objectivity
F1F1F1S1F1F1F10Proper use of government information
F1F1F1S1F1F1F10Professional behavior

Accepted Answer

1. Public interest which focuses auditor

Question 3

There are five ethical concepts underlying effective auditing in the Yellow Book. Which of the following is  not one of them?

Accepted Answer

A)  Public interest focuses auditors' attention on serving the citizenry and honoring the public trust. 
B)  Integrity requires auditors to conduct their work with an attitude that is objective, fact-based, and nonpartisan. 
C)  Disclosure of potential conflicts requires the auditor to disclose immaterial conflicts of interest in the audit report. 
D)  Proper use of government information, resources, and position precludes auditors from using sensitive or classified information or resources for personal gain. 
A)  Public interest focuses auditors' attention on serving the citizenry and honoring the public trust. 
B)  Integrity requires auditors to conduct their work with an attitude that is objective, fact-based, and nonpartisan. 
C)  Disclosure of potential conflicts requires the auditor to disclose immaterial conflicts of interest in the audit report. 
D)  Proper use of government information, resources, and position precludes auditors from using sensitive or classified information or resources for personal gain.

Question 4

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996? Distinguish between Type A and Type B programs.

Accepted Answer

A major program is one that is selected

Question 5

Government auditing standards are commonly known as:

Accepted Answer

A)  The Blue Book. 
B)  The Red Book. 
C)  The Green Book. 
D)  The Yellow Book. 
A)  The Blue Book. 
B)  The Red Book. 
C)  The Green Book. 
D)  The Yellow Book.

Question 6

Which of the following is not accurate with respect to unrelated business income for a 501c3organization?

Accepted Answer

A)  A tax-exempt organization is required to pay tax at the corporate on income generated from any trade or business activities unrelated to the entity's tax-exempt purposes. 
B)  The purpose of the requirement to tax unrelated business income of a 501c3 organization is to eliminate advantages that have over profit-making organizations 
C)  As long as the proceeds are used to further the tax exempt organization's purpose, the income will not be taxed. 
D)  If volunteers perform most of the labor, income-producing activities from will be exempt from unrelated business income tax. 
A)  A tax-exempt organization is required to pay tax at the corporate on income generated from any trade or business activities unrelated to the entity's tax-exempt purposes. 
B)  The purpose of the requirement to tax unrelated business income of a 501c3 organization is to eliminate advantages that have over profit-making organizations 
C)  As long as the proceeds are used to further the tax exempt organization's purpose, the income will not be taxed. 
D)  If volunteers perform most of the labor, income-producing activities from will be exempt from unrelated business income tax.

Question 7

Entities that are tax-exempt under IRS Section 501c3 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 8

If a government failed to report infrastructure assets, the auditor would have to express an adverse opinion on the fund level financial statements.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Which of the following would be a financial audit or a part of a financial audit) under the Government Auditing Standards?

Accepted Answer

A)  An audit expressing an opinion on the basic financial statements of a state or local government audit. 
B)  An examination to determine whether purchasing procedures are appropriately designed to assure program supplies meet standards. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  An audit expressing an opinion on the basic financial statements of a state or local government audit. 
B)  An examination to determine whether purchasing procedures are appropriately designed to assure program supplies meet standards. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 12

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 13

What is the objective of the single audit process?

Accepted Answer

Single audits are intended to provide as

Question 14

The purpose of the Unrelated Business Income Tax is to eliminate advantages that have over commercial enterprises providing goods or services for sale.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The Single Audit Act is intended to provide assurance to the federal government that federal funds have been expended in accordance with laws and regulations, but does not include a report on internal controls.

Accepted Answer

A) True 
 B)False

Question 19

What organization oversees the promulgation of Government Auditing Standards?

Accepted Answer

A)  U.S. Government Accountability Office. 
B)  Governmental Accounting Standards Board. 
C)  Public Companies Accounting Oversight Board. 
D)  Government Accounting Oversight Committee. 
A)  U.S. Government Accountability Office. 
B)  Governmental Accounting Standards Board. 
C)  Public Companies Accounting Oversight Board. 
D)  Government Accounting Oversight Committee.

Question 20

Reporting requirements are a combination of requirements of the Government Auditing Standards and the single audit requirements. The auditor is required to prepare up to five reports. Name four of the reports.

Accepted Answer

any 4 of the following)
1. A report cont

The program expense ratio is calculated as follows: Total expenses / Program service expenses + supporting service expenses.

Explain what is meant by each of the five ethical concepts outlined by the Yellow Book. Public interest Integrity Objectivity Proper use of government information Professional behavior

There are five ethical concepts underlying effective auditing in the Yellow Book. Which of the following is not one of them?

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996? Distinguish between Type A and Type B programs.

Government auditing standards are commonly known as:

Which of the following is not accurate with respect to unrelated business income for a 501c3organization?

Entities that are tax-exempt under IRS Section 501c3 with gross receipts less than $ 500,000 and total assets less than $ 2.5 million may file Form 990-EZ

If a government failed to report infrastructure assets, the auditor would have to express an adverse opinion on the fund level financial statements.

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

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

Which of the following would be a financial audit or a part of a financial audit) under the Government Auditing Standards?

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

What is the objective of the single audit process?

The purpose of the Unrelated Business Income Tax is to eliminate advantages that have over commercial enterprises providing goods or services for sale.

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

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.

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

The Single Audit Act is intended to provide assurance to the federal government that federal funds have been expended in accordance with laws and regulations, but does not include a report on internal controls.

What organization oversees the promulgation of Government Auditing Standards?

Reporting requirements are a combination of requirements of the Government Auditing Standards and the single audit requirements. The auditor is required to prepare up to five reports. Name four of the reports.

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

The program expense ratio is calculated as follows: Total expenses / Program service expenses + supporting service expenses.

Explain what is meant by each of the five ethical concepts outlined by the Yellow Book. Public interest Integrity Objectivity Proper use of government information Professional behavior

There are five ethical concepts underlying effective auditing in the Yellow Book. Which of the following is not one of them?

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996? Distinguish between Type A and Type B programs.

Government auditing standards are commonly known as:

Which of the following is not accurate with respect to unrelated business income for a 501c3organization?

Entities that are tax-exempt under IRS Section 501c3 with gross receipts less than $ 500,000 and total assets less than $ 2.5 million may file Form 990-EZ

If a government failed to report infrastructure assets, the auditor would have to express an adverse opinion on the fund level financial statements.

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

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

Which of the following would be a financial audit or a part of a financial audit) under the Government Auditing Standards?

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

What is the objective of the single audit process?

The purpose of the Unrelated Business Income Tax is to eliminate advantages that have over commercial enterprises providing goods or services for sale.

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

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.

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

The Single Audit Act is intended to provide assurance to the federal government that federal funds have been expended in accordance with laws and regulations, but does not include a report on internal controls.

What organization oversees the promulgation of Government Auditing Standards?

Reporting requirements are a combination of requirements of the Government Auditing Standards and the single audit requirements. The auditor is required to prepare up to five reports. Name four of the reports.

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