Question 1

Government Auditing Standards identify four categories of professional engagements: financial audits, performance audits, and nonaudit services but not attestation engagements.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  One of the four statements required in the second paragraph of an Unmodified audit opinion 
B)  A division of a CPA firm 
C)  A state or local government together with its component units 
D)  A level of reporting of a government that requires a separate materiality level

Question 3

Government Auditing Standards are issued by the U.S. Government Accountability Office GAO.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a governmental audit that is concerned with examining, reviewing, or performing agreed upon procedures on a subject matter of an assertion and reporting on the results?

Accepted Answer

A)  Financial Audit. 
B)  Attestation Engagement. 
C)  Performance Audits. 
D)  Nonaudit Services.

Question 5

Service Efforts and Accomplishments Reporting is mandatory for government organizations.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The Single Audit Act is intended to provide assurance to the federal government that federal funds are protected through a system of internal controls and sound financial management practices.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following conditions would exempt income-producing activities from the Unrelated Business Income Tax UBIT?

Accepted Answer

A)  Majority of labor is performed by paid employees. 
B)  The business sells donated merchandise. 
C)  The business is carried on regularly but is unrelated to the organization's tax-exempt purpose. 
D)  The business is operated for a profit.

Question 9

Churches must file a Form 990.

Accepted Answer

A) True 
 B)False

Question 10

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.

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

Government Auditing Standards identify four categories of professional engagements: financial audits, performance audits, and nonaudit services but not attestation engagements.

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

Government Auditing Standards are issued by the U.S. Government Accountability Office GAO.

Which of the following is a governmental audit that is concerned with examining, reviewing, or performing agreed upon procedures on a subject matter of an assertion and reporting on the results?

Service Efforts and Accomplishments Reporting is mandatory for government organizations.

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

The Single Audit Act is intended to provide assurance to the federal government that federal funds are protected through a system of internal controls and sound financial management practices.

Which of the following conditions would exempt income-producing activities from the Unrelated Business Income Tax UBIT?

Churches must file a Form 990.

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