GAO
Government Accountability Office.
Issues gov auditing standards in the Yellow Book.
Comptroller General oversees the GAO
Government Compliance Audits
Apply to government programs and auditor expects to express an opinion.
Consistent application of ____ does not always apply to government audits.
GAAP
GAGAS
Generally Accepted Government Auditing Standards.
AKA GAS (gov. auditing standards).
Issued by the GAO in the "Yellow Book".
Standards to follow for non-federal entities that expend federal awards.
Although the scope of audits of recipients of federal awards in accordance with federal audit regulations varies, audits under the Single Audit Act generally have which of the following elements in common?
1.The auditor should obtain written management re
2.The auditor is to determine whether the federal financial assistance has been administered in accordance with applicable laws and regulations.
The GAO standards of reporting for governmental financial audits incorporate the AICPA standards of reporting and prescribe additional standards to satisfy the unique needs of governmental audits. Which of the following is a reporting requirement for gove
3.Auditors should report significant deficiencies and material weaknesses in internal controls.
In an audit of compliance with requirements governing awards under major federal programs performed in accordance with the Single Audit Act, the auditor's consideration of materiality differs from materiality under generally accepted auditing standards. U
3.Determined in relation to a type of compliance requirement for a major program.
Because of the pervasive effects of laws and regulations on the financial statements of governmental units, an auditor should obtain written management representations acknowledging that management has
1.Implemented internal controls designed to detect al
3.Identified and disclosed all laws and regulations that have a direct and material effect on its financial statements.
**Reporting standards for financial audits under Government Auditing Standards (the Yellow Book) differ from reporting under generally accepted auditing standards in that Government Auditing Standards require the auditor to
1.Provide negative assurance th
3.Present the results of the auditor's tests of controls.
Under Government Auditing Standards, the report on a financial statement audit should
1.State that the auditor is not aware of any material modifications that must be made to internal control.
2.Express an opinion on internal control.
3.Include a statemen
4.Present the results of the tests of internal controls.
According to Government Auditing Standards,
1.A personal impairment results only from performing audit services.
2.An external impairment is created by the structure of the audited entity.
3.An organizational impairment arises from a threat of removal of
4.An auditor must earn at least 24 CPE hours every 2 years.
When auditing an entity's financial statements in accordance with generally accepted government auditing standards, an auditor should prepare a written report on the auditor's
1.Opinion on the entity's attainment of the goals and objectives specified by a
3.Testing of internal control.
Under the Single Audit Act, the single audit replaces any financial audit required under a federal award. The auditor
1.Prepares a schedule of expenditures of federal awards.
2.Prepares a schedule of audit findings and questioned costs.
3.Submits a report
2.Prepares a schedule of audit findings and questioned costs.
This answer is correct.
The schedule of audit findings and questioned costs includes any instances of (1) known questioned costs greater than $10,000 or (2) known questioned costs when likely q
The report on a financial statement audit performed in accordance with Generally Accepted Governmental Auditing Standards (GAGAS) should
Describe the scope of tests of compliance with laws and regulations and present the results
Refer to a separate report
4.I or II.
In performing a financial statement audit in accordance with Government Auditing Standards, auditors are required to report on the entity's compliance with laws and regulations. This report must
1.Describe the laws and regulations that the entity must com
3.Describe the scope of the auditor's testing of compliance.
According to the additional reporting standards for financial audits in Government Auditing Standards,
1.The audit report should state that the audit was performed in accordance with GAAS.
2.The auditors should report the views of responsible officials if
2.The auditors should report the views of responsible officials if their report discloses fraud.
This answer is correct.
According to an additional reporting standard, "If the auditors' report discloses deficiencies in internal control, fraud, illegal act
In a financial statement audit under Government Auditing Standards, procedures have disclosed material instances of noncompliance with regulations. The report should
1.Also disclose immaterial instances of noncompliance.
2.Be qualified.
3.Indicate that th
4.Place the findings in proper perspective.
This answer is correct.
To give the reader a basis for judging the prevalence and consequences of material fraud, illegal acts, or other noncompliance, the instances identified should be related to the universe
Attestation engagements under Government Auditing Standards include
1.Special reports for specified elements of a financial statement.
2.Reporting on interim financial information.
3.Reporting on the reliability of performance measures.
4.Reporting on pro
3.Reporting on the reliability of performance measures.
(not to be confused with "Performance Audits")
This answer is correct.
Attestation engagements concern examining, reviewing, or performing agreed-upon procedures on a subject matter or an assertion a