Exam 16: Internal Governmental and Fraud Audits

The U.S.Government Accountability Office (GAO)standards do not specifically require a written report in financial statement audits for

Which of the following internal audits is generally not a type of government audit?

Governmental and internal auditors are more concerned with management controls because they directly affect economy,efficiency,and program results.

Auditors are concerned about internal control strengths and weaknesses; fraud investigators are mostly concerned about fraud weaknesses.

Explain briefly the purpose and requirements under the Single Audit Act.

The GAO emphasizes the accountability of public officials for the efficient,economical,and effective use of public funds and resources.

____________________ auditing refers to the study of business operations for the purpose of making recommendations about ____________________ and ____________________ use of resources.

During the audit of the quality control area,an auditor identified that a specific product has a 3 percent failure rate when tested.The specification calls for a failure rate of less than 1.8 percent.Product failure might lead to customer injury and in turn lawsuits against the company.The auditor has communicated this to management.Which of the following is not an acceptable response from management with regard to this risk?

Governmental auditors' independence and objectivity are enhanced when they report the results of an audit assignment directly to

GAO performs three types of government audits: ___________________,____________________ and ____________________ audits.

The ___________________ is the federal law that established uniform requirements for audits of federal financial assistance provided to _________ and _________ governments.

Prosecution of fraud perpetrators is advisable because if not prosecuted,they _______________________________,and failure to do so ______________________________________________________.

The Standards for the Professional Practice of Internal Audit of the Institute of Internal Auditors (IIA)is classified in three major categories.Which of the following is not one of these categories?

Auditors of governmental units would not be presumed to be independent if they are

Which two of the following characterize the work of fraud examiners? I.Analysis of control weaknesses for determination of acceptable fraud risk. II)Analysis of control strengths as a basis for planning other audit procedures. III)Determination of a materiality amount that represents a significant misstatement of the financial statements. IV)Thinking of a materiality amount in cumulative terms-that is,becoming large over a number of years.

The IIA Performance Standards do not include the standard for

Fraud examiners must be concerned with the integrity of the evidence that they find.Preserving the evidence is called

The federal Single Audit Act of 1984 requires auditors to determine and report several things about state and local governments that receive federal funds.Which of the following is not normally required to be reported?

Generally accepted government auditing standards (GAGAS)regarding performance reporting standards requires the reports to tell about which of the following

The stated objective of internal auditing is phrased in terms of service to "the organization," not just to management.