GOV Chapter 15 Quiz Latest 2021

CHAPTER 15

 Question 1A cognizant agency can be either an employee of a federal agency or of an independent accounting firm.

Question 2The Single Audit Act of 1984 was passed to eliminate the costly practice of requiring separate audits for each federal program in which an organization participated.

Question 3Performance audits are sometimes referred to as operational audits.

Question 4Performance audits must be conducted by independent auditors.

Question 5To attest means to confirm that something is true, correct, or genuine.

Question 6An auditor of any governmental or not-for-profit that receives federal monies must include a report on the entity s internal control structure within their audit report or provide a cross-reference to that report.

Question 7The AICPA originally established auditing standards for federal single audits.

Question 8Newly installed computer programs are one indicator that a government s participation in a federal program may be at high risk of noncompliance.

Question 9GAO independence guidelines permit CPA firms to determine the estimated useful lives of their clients assets.

Question 10Under GAO (GAGAS) standards, independent auditors must report all instances of fraud or illegal acts that they discover during the course of an audit.

Question 11Regarding the single audit process, required supplemental information is considered to be within the scope of the audit.

Question 12The GAO publication Government Auditing Standards (commonly known as the Yellow Book) is applicable in which of the following audit situations?

Question 13Which of the following is an example of a financial audit?

 Question 14A performance audit includes which of the following?

Question 15A program audit would include which of the following?

Question 16Which the following is not included in the GAO auditing standards for financial statement audits?

Question 17Which of the following is NOT included in the general standards of GAGAS?

Question 18What amount of continuing professional education would an auditor, who is not a CPA but who is engaged in the audit of a City that receives significant amounts of federal financial assistance, be required to complete?

Question 19An independent CPA who conducts audits of entities that receive federal financial assistance has what responsibility related to peer review?

Question 20An independent CPA is conducting an audit of an entity that receives federal financial assistance and is subject to the GAO standards (GAGAS). The auditor must design the audit to provide reasonable assurance of detecting which of the following?

Question 21An auditor is engaged to audit the Eastern Planning and Development District, a not- for-profit entity that receives federal financial assistance. The auditor designed his audit to provide reasonable assurance of detecting material misstatements resulting from illegal acts. What additional requirements does the auditor have with regard to compliance?

Question 22Which of the following is a true statement with regard to working papers prepared by a CPA in an audit of an entity that receives federal financial assistance?

Question 23An independent CPA is conducting an audit of an entity that is subject to the GAOaudit standards, but is not subject to the OMB audit standards. While conducting the audit, the CPA found that the entity had violated a law that had a large, but not material, potential penalty associated with such violation. There was no accrual for the potential penalty or disclosure of the violation. What action(s) must the CPA take with regard to this violation?

 Question 24An independent auditor has conducted an audit of the financial statements of an entity that receives federal financial assistance, but that is not subject to the OMB standards. What report(s) must the auditor issue at the completion of this engagement?

Question 25Reports issued by CPAs conducting audits subject to the GAO standards must include all of the following except:

Question 26A CPA has conducted an audit of the financial statements of an entity that received federal financial assistance. The CPA identified one major federal program and four nonmajor federal programs. The CPA s responsibility related to the Schedule of Expenditures of Federal Awards is to:

Question 27Which of the following is an objective of the Single Audit Act?

Question 28Which of the following groups is responsible for administering the Single Audit Act?

Question 29A CPA has conducted an audit of the financial statements of an entity that received federal financial assistance and had one program that qualified as a major program. The CPA s responsibility related to reporting on internal control for this entity is to:

Question 30A CPA has conducted an audit of the financial statements of an entity that received federal financial assistance and had one program that qualified as a major program. The CPA s responsibility related to reporting on compliance for this entity is to

Question 31The Single Audit Act distinguishes between major and nonmajor federal programs. One factor that distinguishes a major from a nonmajor program is inherent risk. Which of the following is NOT a characteristic of inherent risk ?

Question 32Which of the following is NOT included in the general requirements for which the auditor must test compliance with federal regulations?

Question 33Each federal financial assistance program has specific compliance requirements. Which of the following is not an example of the general nature of the specific compliance requirements?

Question 34What is the auditor s responsibility for the Schedule of Expenditures of Federal Awards?

Question 35Under which set of auditing standards is the auditor required to test compliance with laws and regulations that could have a direct and material effect on the financial statements of the entity?

Question 36Under which set of auditing standards is the auditor required to express an opinion on compliance with laws and regulations applicable to each major program?

Question 37The Schedule of Findings and Questioned Costs should include all of the following except

 Question 38 Which of the following is NOT a necessary condition for a performance audit?

 Question 39GAO performance audit standards do NOT include which of the following?

Question 40 Which of the following is NOT a key difference between financial and performance audits?

Question 41If a program to be subjected to a performance audit lacks clearly defined objectives, what can the auditor do?

Question 42Which of the following is NOT a technique used by an auditor in a performance audit engagement to gain an understanding of the controls in place to assure that a program meets its objective?

Question 43GAO standards specify that performance audit reports should be timely and include several items. Which of the following items is NOT required under the GAO standards?

 Question 44Which of the following is true about the public availability of audit reports prepared under GAGAS?

 Question 45Which of the following is not a unique characteristic that distinguishes ethical decisions made by employees of governmental entities from those made by employees of for-profit entities?

 Question 46Which of the following is NOT a consideration in resolving an ethical dilemma?

Question 47An elected State Auditor, employed by the State, would NOT be considered independent when auditing which of the following entities?

 Question 48An independent CPA is engaged to audit the financial statements of the City of Highland Hills. The City has a variety of revenue sources including a $350,000 grant from the U.S. Department of Housing and Urban Development. Which of the following audit standards must the CPA use when conducting the audit?

 Question 49Circular A-133, issued by the Office of Management and Budget,

Question 50Which of the following must have an audit under GAGAS?