Question 1

The five additional reporting standards included by GAGAS comprise all of the following except:

Accepted Answer

A)  compliance with GAGAS. 
B)  compliance with internal controls. 
C)  report distribution. 
D)  privileged and confidential operations. 
E)  compliance with laws and regulations. 
A)  compliance with GAGAS. 
B)  compliance with internal controls. 
C)  report distribution. 
D)  privileged and confidential operations. 
E)  compliance with laws and regulations. D

Question 2

The new IIA standards includes all of the following except:

Accepted Answer

A)  attribute standards. 
B)  performance standards. 
C)  implementation standards. 
D)  quality control standards. 
E)  all of the above standards. 
A)  attribute standards. 
B)  performance standards. 
C)  implementation standards. 
D)  quality control standards. 
E)  all of the above standards. D

Question 3

A federal agency that has the responsibility for implementing the requirements for single audits for a particular state or local government is a(n):

Accepted Answer

A)  conscious agency. 
B)  cognizant agency. 
C)  sentient agency. 
D)  perceptive agency. 
E)  observant agency. 
A)  conscious agency. 
B)  cognizant agency. 
C)  sentient agency. 
D)  perceptive agency. 
E)  observant agency. B

Question 4

In order to provide sufficient evidence to support an opinion on compliance, the auditor should set the scope of the audit to address specific requirements such as all of the following, except:

Accepted Answer

A)  types of procedures allowed or not allowed. 
B)  eligibility. 
C)  matching. 
D)  reporting. 
E)  special tests and provisions. 
A)  types of procedures allowed or not allowed. 
B)  eligibility. 
C)  matching. 
D)  reporting. 
E)  special tests and provisions.

Question 5

In the audit performance phase of an operational audit, the auditor relies primarily on:

Accepted Answer

A)  tests of compliance and tests of balances. 
B)  confirming and vouching. 
C)  tests of transactions and tests of balances. 
D)  inquiring and observation. 
E)  tracing and vouching. 
A)  tests of compliance and tests of balances. 
B)  confirming and vouching. 
C)  tests of transactions and tests of balances. 
D)  inquiring and observation. 
E)  tracing and vouching.

Question 6

The categories of generally accepted government auditing standards (GAGAS) that apply to financial audits are:

Accepted Answer

A)  general and field work. 
B)  general, fieldwork, and reporting. 
C)  general standards only. 
D)  field work and reporting. 
E)  general and reporting. 
A)  general and field work. 
B)  general, fieldwork, and reporting. 
C)  general standards only. 
D)  field work and reporting. 
E)  general and reporting.

Question 7

The working papers represent the primary support for the auditor's report in both a financial statement audit and an operational audit.

Accepted Answer

A) True 
 B)False

Question 8

Generally accepted government auditing standards for financial audits are classified as:
-Planning
_____

Accepted Answer

A) General, 
B) Field Work 
C) Reporting. 
A) General, 
B) Field Work 
C) Reporting.

Question 9

The general standards for the professional practice of internal auditing include the following:
-The director of internal auditing should establish a program for selecting and developing the human resources of the internal auditing department.
_____

Accepted Answer

A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department. 
A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department.

Question 10

The general standards for the professional practice of internal auditing include the following:
-The director of internal auditing should coordinate internal and external audit efforts.
_____

Accepted Answer

A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department. 
A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department.

Question 11

The general standards for the professional practice of internal auditing include the following:
-Internal auditors should review the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
_____

Accepted Answer

A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department. 
A) Independence, 
B) Professional Proficiency, 
C) Scope of Work, 
D) Performance of Audit Work, and 
E) Management of the Internal Auditing Department.

Question 12

On completing the audit of the general-purpose financial statements of the City of Devon, the auditor issued the following "compliance report."
We conducted our audit in accordance with GAAS issued by the AICPA. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the City complied, in all material respects, with applicable laws and regulations.
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, our objective was not to provide an opinion on overall compliance with such provisions.
The result of our tests indicate that, with respect to the items tested, the City of Devon complied, in all material respects, with the provision referred to in the preceding paragraph.
[Signature]
[Date]
REQUIRED: Identify any erroneous statements in, or parts missing from, the report.

Accepted Answer

1.There should be an introductory paragr

Question 13

In an operational audit, the auditor's findings basically result in constructive criticism.

Accepted Answer

A) True 
 B)False

Question 14

Under the Single Audit Act, state and local governments and nonprofit organizations that receive $100,000 or more in federal financial assistance in any fiscal year, either directly from a federal agency or indirectly through another state or local government entity, are required to have a single annual audit.

Accepted Answer

A) True 
 B)False

Question 15

Match between columns
                        Premises:  Independence
 Planning
 Compliance with GAGAS
 Evidence ─ Working Papers
 Due Professional Care
 Communication with Audit Committees
 Report Distribution
 Qualifications
 Quality Control
 Privileged and Confidential Information

Accepted Answer

The Answer of General and Field Work. and Reporting. is...

Question 16

A report on an operational audit should include all of the following except:

Accepted Answer

A)  a statement of the objectives and scope of the audit. 
B)  a summary of the findings. 
C)  recommendations for improvement. 
D)  comments of the auditee. 
E)  a detailed description of the work done in the audit. 
A)  a statement of the objectives and scope of the audit. 
B)  a summary of the findings. 
C)  recommendations for improvement. 
D)  comments of the auditee. 
E)  a detailed description of the work done in the audit.

Question 17

Internal audit has a reporting responsibility directly to the board of directors or its audit committee.

Accepted Answer

A) True 
 B)False

Question 18

The operational audit report is usually drafted by the manager of the audited unit.

Accepted Answer

A) True 
 B)False

Question 19

Copies of operational audit reports are ordinarily sent to who?

Accepted Answer

A)  senior management and the audit committee. 
B)  senior management. 
C)  the auditee. 
D)  the audit committee. 
E)  the external auditor the audit committee. 
A)  senior management and the audit committee. 
B)  senior management. 
C)  the auditee. 
D)  the audit committee. 
E)  the external auditor the audit committee.

Question 20

Which of the following items is a misquote from the IIA's definition of internal auditing?

Accepted Answer

A)  "...an independent, objective staff function..." 
B)  "designed to add value…" 
C)  "and improve an organization's operations." 
D)  "It helps an organization accomplish its objectives…" 
E)  "by bringing a systematic, disciplined approach…" 
A)  "...an independent, objective staff function..." 
B)  "designed to add value…" 
C)  "and improve an organization's operations." 
D)  "It helps an organization accomplish its objectives…" 
E)  "by bringing a systematic, disciplined approach…"

The five additional reporting standards included by GAGAS comprise all of the following except:

The new IIA standards includes all of the following except:

A federal agency that has the responsibility for implementing the requirements for single audits for a particular state or local government is a(n):

In order to provide sufficient evidence to support an opinion on compliance, the auditor should set the scope of the audit to address specific requirements such as all of the following, except:

In the audit performance phase of an operational audit, the auditor relies primarily on:

The categories of generally accepted government auditing standards (GAGAS) that apply to financial audits are:

The working papers represent the primary support for the auditor's report in both a financial statement audit and an operational audit.

Generally accepted government auditing standards for financial audits are classified as: -Planning _____

The general standards for the professional practice of internal auditing include the following: -The director of internal auditing should establish a program for selecting and developing the human resources of the internal auditing department. _____

The general standards for the professional practice of internal auditing include the following: -The director of internal auditing should coordinate internal and external audit efforts. _____

The general standards for the professional practice of internal auditing include the following: -Internal auditors should review the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information. _____

In an operational audit, the auditor's findings basically result in constructive criticism.

A report on an operational audit should include all of the following except:

Internal audit has a reporting responsibility directly to the board of directors or its audit committee.

The operational audit report is usually drafted by the manager of the audited unit.

Copies of operational audit reports are ordinarily sent to who?

Which of the following items is a misquote from the IIA's definition of internal auditing?

Auditing and the Public Accounting

Financial Statement Audits and

Professional Ethics

Auditors Legal Liability

Overview of the Audit Process

Audit Evidence, Audit Objectives,

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Filters

Exam 21: Internal, Operational, and

The five additional reporting standards included by GAGAS comprise all of the following except:

The new IIA standards includes all of the following except:

A federal agency that has the responsibility for implementing the requirements for single audits for a particular state or local government is a(n):

In order to provide sufficient evidence to support an opinion on compliance, the auditor should set the scope of the audit to address specific requirements such as all of the following, except:

In the audit performance phase of an operational audit, the auditor relies primarily on:

The categories of generally accepted government auditing standards (GAGAS) that apply to financial audits are:

The working papers represent the primary support for the auditor's report in both a financial statement audit and an operational audit.

Generally accepted government auditing standards for financial audits are classified as: -Planning _____

The general standards for the professional practice of internal auditing include the following: -The director of internal auditing should establish a program for selecting and developing the human resources of the internal auditing department. _____

The general standards for the professional practice of internal auditing include the following: -The director of internal auditing should coordinate internal and external audit efforts. _____

The general standards for the professional practice of internal auditing include the following: -Internal auditors should review the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information. _____

In an operational audit, the auditor's findings basically result in constructive criticism.

A report on an operational audit should include all of the following except:

Internal audit has a reporting responsibility directly to the board of directors or its audit committee.

The operational audit report is usually drafted by the manager of the audited unit.

Copies of operational audit reports are ordinarily sent to who?

Which of the following items is a misquote from the IIA's definition of internal auditing?

Auditing and the Public Accounting

Financial Statement Audits and

Professional Ethics

Auditors Legal Liability

Overview of the Audit Process

Audit Evidence, Audit Objectives,

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Filters