Question 1

The objectives of internal auditors are considerably broader than the objectives of external auditors.

Accepted Answer

A) True 
 B)False

Question 2

The auditing standards of the Yellow Book are consistent with the ten generally accepted auditing standards of the AICPA.There are, however, important additions/modifications in the Yellow Book.For example, the Yellow Book recognizes that materiality and risk are lower due to the nature of the government enterprise.Discuss the other additions/modifications.

Accepted Answer

•Quality control.Auditors of government

Question 3

The Single Audit Act requires that an audit be conducted for recipients who receive total federal funds in any fiscal year of:

Accepted Answer

A) $1,000,000 or more. 
B) $500,000 or more. 
C) $300,000 or more. 
D) $100,000 or more. 
A) $1,000,000 or more. 
B) $500,000 or more. 
C) $300,000 or more. 
D) $100,000 or more.

Question 4

Internal auditing standards are included in the Blue Book.

Accepted Answer

A) True 
 B)False

Question 5

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

Accepted Answer

A) True 
 B)False

Question 6

List the three purposes of a program audit.

Accepted Answer

1.The extent to which the desired result

Question 7

Which of the following is not a purpose of a program audit as performed by government auditors?

Accepted Answer

A) Determination of the extent to which the desired results established by the legislature are being achieved 
B) Determination of the causes of inefficiencies in sponsored programs 
C) Determination of the effectiveness of organizations, programs and activities 
D) Determination as to whether the entity has complied with laws and regulations applicable to the program 
A) Determination of the extent to which the desired results established by the legislature are being achieved 
B) Determination of the causes of inefficiencies in sponsored programs 
C) Determination of the effectiveness of organizations, programs and activities 
D) Determination as to whether the entity has complied with laws and regulations applicable to the program

Question 8

The two most important qualities for an operational auditor to possess are independence and competence.

Accepted Answer

A) True 
 B)False

Question 9

The Internal Auditing Standards Board issues Statements on Internal Auditing Standards.

Accepted Answer

A) True 
 B)False

Question 10

Governmental Auditing Standards recognize that because of public accountability over governmental activities the acceptable tolerable misstatement as compared to commercial businesses may be:

Accepted Answer

A) equal. 
B) lower. 
C) higher. 
D) indeterminable. 
A) equal. 
B) lower. 
C) higher. 
D) indeterminable.

Question 11

External auditors would consider internal auditors effective if they are:

Accepted Answer

A) independent of the operating units being evaluated. 
B) competent and well trained. 
C) have performed relevant audit tests of the internal controls and financial statements. 
D) all of the above. 
A) independent of the operating units being evaluated. 
B) competent and well trained. 
C) have performed relevant audit tests of the internal controls and financial statements. 
D) all of the above.

Question 12

External financial statement auditors must obtain evidence regarding what attributes of an internal audit department if the external auditors intend to rely on the internal auditor's work?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 13

Operational auditing is the review of an organization for efficiency and effectiveness.Discuss what is meant by the terms "effectiveness" and "efficiency."

Accepted Answer

•Effectiveness refers to the d

The objectives of internal auditors are considerably broader than the objectives of external auditors.

The Single Audit Act requires that an audit be conducted for recipients who receive total federal funds in any fiscal year of:

Internal auditing standards are included in the Blue Book.

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

List the three purposes of a program audit.

Which of the following is not a purpose of a program audit as performed by government auditors?

The two most important qualities for an operational auditor to possess are independence and competence.

The Internal Auditing Standards Board issues Statements on Internal Auditing Standards.

Governmental Auditing Standards recognize that because of public accountability over governmental activities the acceptable tolerable misstatement as compared to commercial businesses may be:

External auditors would consider internal auditors effective if they are:

External financial statement auditors must obtain evidence regarding what attributes of an internal audit department if the external auditors intend to rely on the internal auditor's work?

Operational auditing is the review of an organization for efficiency and effectiveness.Discuss what is meant by the terms "effectiveness" and "efficiency."

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Filters

Exam 26: Internal and Governmental Financial Auditing and Operational Auditing

The objectives of internal auditors are considerably broader than the objectives of external auditors.

The Single Audit Act requires that an audit be conducted for recipients who receive total federal funds in any fiscal year of:

Internal auditing standards are included in the Blue Book.

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

List the three purposes of a program audit.

Which of the following is not a purpose of a program audit as performed by government auditors?

The two most important qualities for an operational auditor to possess are independence and competence.

The Internal Auditing Standards Board issues Statements on Internal Auditing Standards.

Governmental Auditing Standards recognize that because of public accountability over governmental activities the acceptable tolerable misstatement as compared to commercial businesses may be:

External auditors would consider internal auditors effective if they are:

External financial statement auditors must obtain evidence regarding what attributes of an internal audit department if the external auditors intend to rely on the internal auditor's work?

Operational auditing is the review of an organization for efficiency and effectiveness.Discuss what is meant by the terms "effectiveness" and "efficiency."

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Filters