Exam 11: Auditing of Governmental and Not-For-Profit Organizations

A condition whereby the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent,or detect and correct misstatements on a timely basis is called a(an)

Which of the following statements concerning the Single Audit Act of 1984 (with 1996 Amendments)is correct?

Attestation engagements include

Which of the following is the highest in the hierarchy of generally accepted accounting principles for federal government entities?

One of the primary purposes of the Single Audit Act of 1984 (amended in 1996)is to

Though used historically by corporate boards of directors,audit committees have great potential in a government setting to improve the quality of financial reporting through the audit process.

The scope paragraph of an audit report identifies the audit standards used in performing the audit and describes any limitations imposed on the audit.

Audits of state and local governments may be performed by all of the following except

Governments often engage one auditor to audit the primary government and other auditors to audit certain component units.In such cases the auditor of the primary government is permitted under generally accepted auditing standards (GAAS)to rely on the work of the other auditors.

The following are key terms in Chapter 11 that relate to single audits: A.Risk-based approach B.Single audit C.Questioned cost D.Material weakness E.Oversight agency F.Major programs G.Cognizant agency H.Significant deficiency

Threats to independence include all of the following except

"An unqualified opinion on the financial statements of a local government means that all statements in the comprehensive annual financial report (CAFR)have been audited and conform with GAAP." Do you agree or disagree? Why?

The single audit requirement applies to

Only state and local governments and their component units must have single audits; colleges and universities and other not-for-profit organizations that expend federal financial awards are not required to have single audits.

The introductory paragraph of an audit report introduces the auditor and his/her background and qualifications to perform the auditor.

An audit of a government's financial statements,conducted in accordance with generally accepted government auditing standards (GAGAS),includes

The AICPA's Audit and Accounting Guide,State and Local Governments requires auditors to make separate materiality determinations for each opinion unit.

Governments and not-for-profit entities may be subject to each of the following levels of audit except

Generally accepted government auditing standards (GAGAS)

Answer the following questions relating to the provisions of the Single Audit Act of 1984 and 1996 Amendments. (a)What is a single audit? (b)How do you determine if your government must have a single audit? (c)Where would you find authoritative guidance on conducting a single audit?