ACCT - 410 Quiz

 
The purpose of this is to avoid duplication of efforts in conducting governmental audits
Answer
 
 AICPA’s Professional Standards
 
 GAO’s Government Auditing Standards
 
 Single Audit Act
 
 OMB Circular A-133

Which of the following is not a General Auditing Standard for financial audits?
Answer
 
 professional judgment
 
 financial stability
 
 independence
 
 competence

 
The Yellow Book’s general standards are issued by the
Answer
 
 GAO
 
 FASB
 
 AICPA
 
 IRS

Which of the following is a Yellow Book standard in respect to independence?
Answer
 
 auditors may only audit one government agency during a fiscal year
 
 auditors should not audit their own work
 
 auditors may not advise in respect to computer installation
 
 auditors may not audit public corporations

Government Auditing Standards characterizes government engagements into which of the following three categories?
Answer
 
 financial audits, compliance audits, and performance audits
 
 financial audits, operational audits, and performance audits
 
 financial audits, attest engagements, and performance audits
 
 financial audits, efficiency and effectiveness audits, and compliance audits

 
This law requires that the wages of laborers and mechanics employed by the contractors of federally funded projects be paid at prevailing local wage rates.
Answer
 
 Davis-Bacon Act
 
 Sarbanes-Oxley Act
 
 Federal Wage and Hour Law
 
 IRS Act

Federal funds must be used only for activities that are within the scope of the grant would be a(n)
Answer
 
 optional activity
 
 Yelllow Book mandate
 
 allowable activity
 
 prohibited activity

 
In discerning the objectives of a program to be audited, the auditors should give the least credibility to
Answer
 
 the legislation creating the program
 
 the organization’s program budget
 
 the organization’s mission statement and strategic plan
 
 comments by the lower-level employees who actually depend on the program for their livelihoods.

 
The process of specifically directing federal funds to a particular program is called:
Answer
 
 allocation
 
 earmarking
 
 identification
 
 subversion

 
Auditors who perform government audits must complete 80 hours of continuing professional
education every two years, of which ____ hours must be related directly to government auditing.
Answer
 
 24
 
 30
 
 16
 
 8
 

Government Auditing Standards must be adhered to in all financial audits except of
Answer
 
 state and local governments
 
 federal agencies
 
 federally chartered banks
 
 public corporations

 
Which of the following is not reported upon in the Schedule of Findings and Questioned Costs?
Answer
 
 reportable conditions related to internal control
 
 material noncompliance with provisions of laws, regulations, contracts, or grant agreements
 
 material examples of inefficiency and ineffectiveness in carrying out federally funded programs
 
 federally reimbursed expenditures that are not adequately documented
 
In reporting the results of a performance audit, it is appropriate for the auditors to
Answer
 
 conjecture as to the reasons for the program’s failure to achieve desired results
 
 include the auditors’ response to management’s objections to the auditors’ findings
 
 provide recommendations as to how the program can be improved
 
 all of the above.

 
Which of the following statements is incorrect about GAO standards pertaining to performance audits?
Answer
 
 The GAO mandates that programs be audited annually by accounting trained professionals
 
 Performance audits are normally carried out by internal audit departments
 
 Performance audits focus on specific programs
 
 The GAO does not specify when and how often a program, must be audited

‘‘Generally accepted government auditing standards’’ (GAGAS) refers to standards incorporated in
Answer
 
 the Yellow Book
 
 the Yellow Book and OMB Circular A-133
 
 the Yellow Book and the AICPA’s Professional Standards
 
 the Yellow Book OMB Circular A-133, and the AICPA’s Professional Standards