Exam 16: Internal Audits, Governmental Audits, and Fraud Examinations

Which of the following statements is a standard applicable to financial statement audits in accordance with government auditing standards?

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

When dealing with standards,measurements,and comparisons,input measurements are most important for audits of

Program audits include determining

The services provided by internal auditors do not include

Senior management has ordered a compliance audit of the organization's employee benefits package.Which of the following do both the chief audit executive and senior management consider a primary engagement objective?

Governmental and internal auditors are more concerned with compliance with laws,regulation and policy than are external auditors.

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

Once a fraud is discovered,the focus of the audit changes to an investigation with the primary objective of ___________________________________________________. Question also found in study guide

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?

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?

Internal auditors should be independent when obtaining evidence in the sense of being free financial relationships such as owning stock.

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

A university received a significant grant from the state in which it resides.Which of the following would be of greatest interest to a governmental auditor auditing that grant at the university?

The Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors (IIA)does not include the broad category of

The definition of administrative control does not include reference to

Following are five cases (1-5)illustrating different types of audit engagements.In the space provided by each case,indicate the type of audit that would be conducted (H-M),the specific type of auditor who might perform the engagement (P-S),and the auditing standards that would probably apply for the engagement (W-Z). Case 1.A CPA firm's review of the effectiveness of a federally supported unemployment training program. Case 2.An audit of financial statements as part of a registration under the Securities Act of 1933. Case 3.A review of the company's plant security to determine whether it is operating effectively. Case 4.A review of the Human Resource Department's hiring practices. Case 5.A study of how the Department of Defense could reduce costs from a competitive bid program. Type of Audit Type of Auditor Audit Standards (H) Financial (P) Independent CPA (W) GAAS (I) Operational (Q) Internal Auditor (X) GAO (J) Compliance (R) GAO Auditor (Y) IIA (K) Performance (S) Fraud Examiner (Z) Assoeiation of Certified Fraud Examiners (L) Governance (M) Attestation Letter Type of Audit Type of Author Auditing Standards a. b. c. d. e.

Following are five cases (1-5)that illustrate different types of audit engagements.In the space provided,indicate the type of audit that would be conducted,the specific auditor who might undertake the engagement,and the auditing standards that would probably apply for the engagement.

The standards of the Institute of Internal Auditors (IIA)are grouped under two broad categories.Identify and briefly explain each of the categories.Each category has special standards written for specific types of audits.Identify the two types of special standards for each category.

The GAO standards go beyond the AICPA's GAAS in a number of respects. Question also found in study guide