Question 1

The primary difference between operational auditing and financial auditing is that in operational auditing,the auditor

Accepted Answer

A)  Is concerned only with the audited activity's adherence to company policy and procedures. 
B)  Is seeking to help management use resources in the most effective manner possible. 
C)  Starts the process with the financial statements of an activity being audited and works backward to the basic processes involved in producing them. 
D)  Can use analytical skills and tools that are not necessary in financial auditing. 
A)  Is concerned only with the audited activity's adherence to company policy and procedures. 
B)  Is seeking to help management use resources in the most effective manner possible. 
C)  Starts the process with the financial statements of an activity being audited and works backward to the basic processes involved in producing them. 
D)  Can use analytical skills and tools that are not necessary in financial auditing.

Question 2

The U.S.Government Accountability Office is an agency of

Accepted Answer

A)  The U.S. Congress. 
B)  The Executive Office of Management and Budget. 
C)  The U.S. Supreme Court. 
D)  The Federal Accounting Standards Board. 
A)  The U.S. Congress. 
B)  The Executive Office of Management and Budget. 
C)  The U.S. Supreme Court. 
D)  The Federal Accounting Standards Board.

Question 3

The best way to enact a broad fraud-prevention program is to

Accepted Answer

A)  Install airtight control systems of checks and supervision. 
B)  Name an "ethics officer" who is responsible for receiving and acting upon fraud tips. 
C)  Place dedicated "hotline" telephones on walls around the workplace with direct communication to the company ethics officer. 
D)  Establish a corporate culture conducive to ethical behavior in the workplace. 
A)  Install airtight control systems of checks and supervision. 
B)  Name an "ethics officer" who is responsible for receiving and acting upon fraud tips. 
C)  Place dedicated "hotline" telephones on walls around the workplace with direct communication to the company ethics officer. 
D)  Establish a corporate culture conducive to ethical behavior in the workplace.

Question 4

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______________________,_________________________________,and ________________________________.

Accepted Answer

its scope; identifyi

Question 5

When independent CPAs in public practice take engagements to audit government units or financial assistance recipients,they must follow

Accepted Answer

A)  GAAS only. 
B)  GAAS and GAGAS. 
C)  GAGAS only. 
D)  Internal auditing standards. 
A)  GAAS only. 
B)  GAAS and GAGAS. 
C)  GAGAS only. 
D)  Internal auditing standards.

Question 6

Government performance audits determine if _________________________________________________________ and _______________________________________________.

Accepted Answer

programs are using r

Question 7

The Government Accountability Office (GAO)is headed by the U.S.Congress.

Accepted Answer

A) True 
 B)False

Question 8

In all audits of governmental units performed according to GAGAS,the most important work is

Accepted Answer

A)  Compliance auditing. 
B)  Obtaining a sufficient understanding of internal control. 
C)  Documentation of the audit. 
D)  Exit interviews with managers in the governmental unit. 
A)  Compliance auditing. 
B)  Obtaining a sufficient understanding of internal control. 
C)  Documentation of the audit. 
D)  Exit interviews with managers in the governmental unit.

Question 9

The demand for compliance auditing in generally accepted government auditing standards (GAGAS)terms is generated by

Accepted Answer

A)  Acts discreditable to the profession. 
B)  Financial statement audits performed in accordance with generally accepted auditing standards. 
C)  Governmental managers' obligations to follow laws and regulations. 
D)  Public reports on government managers' following laws and regulations. 
A)  Acts discreditable to the profession. 
B)  Financial statement audits performed in accordance with generally accepted auditing standards. 
C)  Governmental managers' obligations to follow laws and regulations. 
D)  Public reports on government managers' following laws and regulations.

Question 10

A person testifying about findings during litigation support,application of accounting principles,or application of auditing standards is called a(n)_________________________________.

Accepted Answer

The answer of A person testifying about findings during litigation...

Question 11

In assessing the objectivity of internal auditors,an independent auditor should

Accepted Answer

A)  Evaluate the quality control program in effect for the internal auditors. 
B)  Examine documentary evidence of the work performed by the internal auditors. 
C)  Test a sample of the transactions and balances that the internal auditors examined. 
D)  Determine the organizational level to which the internal auditors report. 
A)  Evaluate the quality control program in effect for the internal auditors. 
B)  Examine documentary evidence of the work performed by the internal auditors. 
C)  Test a sample of the transactions and balances that the internal auditors examined. 
D)  Determine the organizational level to which the internal auditors report.

Question 12

Which of the following best describes how the detailed audit plan of a financial statement auditor compares with the audit client's comprehensive internal audit plan?

Accepted Answer

A)  The comprehensive internal audit plan covers areas that an external auditor would normally not review. 
B)  The comprehensive internal audit plan is more detailed although it covers fewer areas than an external auditor would normally cover. 
C)  The comprehensive internal audit plan is substantially identical to the audit program used by an external auditor because both review substantially identical areas. 
D)  The comprehensive internal audit plan is less detailed and covers fewer areas than an external auditor would normally review. 
A)  The comprehensive internal audit plan covers areas that an external auditor would normally not review. 
B)  The comprehensive internal audit plan is more detailed although it covers fewer areas than an external auditor would normally cover. 
C)  The comprehensive internal audit plan is substantially identical to the audit program used by an external auditor because both review substantially identical areas. 
D)  The comprehensive internal audit plan is less detailed and covers fewer areas than an external auditor would normally review.

Question 13

In a single audit of federal financial assistance programs,which of the following does the auditor not need to determine and report for each organization?

Accepted Answer

A)  An expanded scope audit of economy, efficiency, and program results. 
B)  That the financial statements are presented fairly in accordance with GAAP. 
C)  That an adequate internal control system is in place. 
D)  That the laws and regulations have been complied with. 
A)  An expanded scope audit of economy, efficiency, and program results. 
B)  That the financial statements are presented fairly in accordance with GAAP. 
C)  That an adequate internal control system is in place. 
D)  That the laws and regulations have been complied with.

Question 14

Internal audit findings should always include ___________________,___________________,___________________,___________________,and ___________________.

Accepted Answer

condition; criteria;

Question 15

Which of the following is considered different and more limited in objectives than the others?

Accepted Answer

A)  Operational auditing. 
B)  Performance auditing. 
C)  Management auditing. 
D)  Financial statement auditing. 
A)  Operational auditing. 
B)  Performance auditing. 
C)  Management auditing. 
D)  Financial statement auditing.

Question 16

In performing a financial statement audit in accordance with government auditing standards,an auditor is required to report on the entity's compliance with laws and regulations.This report should

Accepted Answer

A)  State that compliance with laws and regulations is the responsibility of the entity's management. 
B)  Describe the laws and regulations with which the entity must comply. 
C)  Provide an opinion on overall compliance with laws and regulations. 
D)  Indicate that the auditor does not possess legal skills and cannot make legal judgments. 
A)  State that compliance with laws and regulations is the responsibility of the entity's management. 
B)  Describe the laws and regulations with which the entity must comply. 
C)  Provide an opinion on overall compliance with laws and regulations. 
D)  Indicate that the auditor does not possess legal skills and cannot make legal judgments.

Question 17

Having the authority and responsibility to report to the vice president for finance or the treasurer enhances an internal auditor's independence.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a difference between performing an audit and performing a fraud examination?

Accepted Answer

A)  Auditors are not concerned with the nature of a financial misstatement; fraud examiners are concerned with the nature of the misstatement. 
B)  Auditors use analytical procedures, such as trend analysis, to identify risks of misstatements; fraud examiners are not interested in analytical procedures because they must identify specific items that prove the occurrence of fraud. 
C)  Auditors are generally not concerned with small immaterial misstatements; fraud examiners generally do not believe that any fraud is immaterial. 
D)  Auditors are concerned only with financial statement errors; fraud examiners are concerned only with the theft of assets by employees. 
A)  Auditors are not concerned with the nature of a financial misstatement; fraud examiners are concerned with the nature of the misstatement. 
B)  Auditors use analytical procedures, such as trend analysis, to identify risks of misstatements; fraud examiners are not interested in analytical procedures because they must identify specific items that prove the occurrence of fraud. 
C)  Auditors are generally not concerned with small immaterial misstatements; fraud examiners generally do not believe that any fraud is immaterial. 
D)  Auditors are concerned only with financial statement errors; fraud examiners are concerned only with the theft of assets by employees.

Question 19

When auditing with "fraud awareness," auditors should especially notice and review employee activities under which of these conditions?

Accepted Answer

A)  The company always estimates the inventory but never takes a complete physical count. 
B)  The petty cash box is always locked in the desk of the custodian. 
C)  Management has published a company code of ethics and sends frequent communication newsletters about it. 
D)  The board of directors reviews and approves all investment transactions. 
A)  The company always estimates the inventory but never takes a complete physical count. 
B)  The petty cash box is always locked in the desk of the custodian. 
C)  Management has published a company code of ethics and sends frequent communication newsletters about it. 
D)  The board of directors reviews and approves all investment transactions.

Question 20

In a fraud audit,original documents must be protected from damage and tampering to

Accepted Answer

A)  Establish motive. 
B)  Develop documentation for employee dismissal. 
C)  Protect the chain of custody. 
D)  Ensure that suspects are unaware of an investigation in progress. 
A)  Establish motive. 
B)  Develop documentation for employee dismissal. 
C)  Protect the chain of custody. 
D)  Ensure that suspects are unaware of an investigation in progress.

The primary difference between operational auditing and financial auditing is that in operational auditing,the auditor

The U.S.Government Accountability Office is an agency of

The best way to enact a broad fraud-prevention program is to

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______,_,and ________________.

When independent CPAs in public practice take engagements to audit government units or financial assistance recipients,they must follow

Government performance audits determine if ___________ and _.

The Government Accountability Office (GAO)is headed by the U.S.Congress.

In all audits of governmental units performed according to GAGAS,the most important work is

The demand for compliance auditing in generally accepted government auditing standards (GAGAS)terms is generated by

A person testifying about findings during litigation support,application of accounting principles,or application of auditing standards is called a(n)_________________________________.

In assessing the objectivity of internal auditors,an independent auditor should

Which of the following best describes how the detailed audit plan of a financial statement auditor compares with the audit client's comprehensive internal audit plan?

In a single audit of federal financial assistance programs,which of the following does the auditor not need to determine and report for each organization?

Internal audit findings should always include _________,_,_,_,and ___________.

Which of the following is considered different and more limited in objectives than the others?

In performing a financial statement audit in accordance with government auditing standards,an auditor is required to report on the entity's compliance with laws and regulations.This report should

Having the authority and responsibility to report to the vice president for finance or the treasurer enhances an internal auditor's independence.

Which of the following is a difference between performing an audit and performing a fraud examination?

When auditing with "fraud awareness," auditors should especially notice and review employee activities under which of these conditions?

In a fraud audit,original documents must be protected from damage and tampering to

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 16: Internal Governmental and Fraud Audits

The primary difference between operational auditing and financial auditing is that in operational auditing,the auditor

The U.S.Government Accountability Office is an agency of

The best way to enact a broad fraud-prevention program is to

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______________________,_________________________________,and ________________________________.

When independent CPAs in public practice take engagements to audit government units or financial assistance recipients,they must follow

Government performance audits determine if _________________________________________________________ and _______________________________________________.

The Government Accountability Office (GAO)is headed by the U.S.Congress.

In all audits of governmental units performed according to GAGAS,the most important work is

The demand for compliance auditing in generally accepted government auditing standards (GAGAS)terms is generated by

A person testifying about findings during litigation support,application of accounting principles,or application of auditing standards is called a(n)_________________________________.

In assessing the objectivity of internal auditors,an independent auditor should

Which of the following best describes how the detailed audit plan of a financial statement auditor compares with the audit client's comprehensive internal audit plan?

In a single audit of federal financial assistance programs,which of the following does the auditor not need to determine and report for each organization?

Internal audit findings should always include ___________________,___________________,___________________,___________________,and ___________________.

Which of the following is considered different and more limited in objectives than the others?

In performing a financial statement audit in accordance with government auditing standards,an auditor is required to report on the entity's compliance with laws and regulations.This report should

Having the authority and responsibility to report to the vice president for finance or the treasurer enhances an internal auditor's independence.

Which of the following is a difference between performing an audit and performing a fraud examination?

When auditing with "fraud awareness," auditors should especially notice and review employee activities under which of these conditions?

In a fraud audit,original documents must be protected from damage and tampering to

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______,_,and ________________.

Government performance audits determine if ___________ and _.

Internal audit findings should always include _________,_,_,_,and ___________.