Question 1

Which of the following is not a governmental audit opinion unit?

Accepted Answer

A)  Governmental activities 
B)  Business-type activities 
C)  Each Major Fund 
D)  All of the above are opinion units 
A)  Governmental activities 
B)  Business-type activities 
C)  Each Major Fund 
D)  All of the above are opinion units D

Question 2

Organizations exempt under section 501(c)(3) of the Internal Revenue code are required to file Form 990 or in some cases an alternate form by the 15th day of which month?

Accepted Answer

A)  The 9th month following the taxable year of the organization 
B)  The 3rd month of the calendar year 
C)  The 5th month following the taxable year of the organization 
D)  The month in which the organization originally filed 
A)  The 9th month following the taxable year of the organization 
B)  The 3rd month of the calendar year 
C)  The 5th month following the taxable year of the organization 
D)  The month in which the organization originally filed C

Question 3

In a governmental audit the auditor:

Accepted Answer

A)  Is required to report directly to appropriate officials in addition to the board or audit committee 
B)  Is only required to report to the board or audit committee 
C)  Is only required to report directly to the appropriate officials 
D)  None of the above 
A)  Is required to report directly to appropriate officials in addition to the board or audit committee 
B)  Is only required to report to the board or audit committee 
C)  Is only required to report directly to the appropriate officials 
D)  None of the above A

Question 4

Entities that are tax exempt under IRS Section 501(c)3 are required to provide copies, upon request, of the three most recent Form 990 returns.

Accepted Answer

A) True 
 B)False

Question 5

A tax-exempt organization must pay income taxes on income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

Accepted Answer

A) True 
 B)False

Question 6

The use of opinion units allows the auditor to

Accepted Answer

A)  Only allow one opinion for entire entity not its components 
B)  Plan the audit better and increase the effectiveness of substantive procedures 
C)  Provide different opinions on different components of the reporting entity 
D)  Eliminate the need for Test of Controls 
A)  Only allow one opinion for entire entity not its components 
B)  Plan the audit better and increase the effectiveness of substantive procedures 
C)  Provide different opinions on different components of the reporting entity 
D)  Eliminate the need for Test of Controls

Question 7

The GASB has authority to issue standards for Service Efforts and Accomplishments Reporting.

Accepted Answer

A) True 
 B)False

Question 8

In a governmental audit the auditor is required to report directly to appropriate officials in addition to the board or audit committee.

Accepted Answer

A) True 
 B)False

Question 9

Why is Service Efforts and Accomplishments reporting especially important for governmental and not-for-profit entities?

Accepted Answer

Service Efforts and Accomplishments repo

Question 10

A ratio that measures solvency is:

Accepted Answer

A)  Net assets/expenses 
B)  Program expense ratio 
C)  Net debt to assets 
D)  Fundraising efficiency 
A)  Net assets/expenses 
B)  Program expense ratio 
C)  Net debt to assets 
D)  Fundraising efficiency

Question 11

Service Efforts and Accomplishments Reporting is best completed by using a variety of measures, which are reported consistently.

Accepted Answer

A) True 
 B)False

Question 12

All of the following are differences between private sector auditing and governmental auditing except:

Accepted Answer

A)  The public availability of audit reports 
B)  Testing of compliance with laws and regulations 
C)  Governmental audits require auditor knowledge of government accounting and auditing 
D)  All of the above are differences between private sector auditing and governmental auditing 
A)  The public availability of audit reports 
B)  Testing of compliance with laws and regulations 
C)  Governmental audits require auditor knowledge of government accounting and auditing 
D)  All of the above are differences between private sector auditing and governmental auditing

Question 13

Assume the mission statement for the Area Homeless Shelter is as follows:
To provide temporary shelter and meals to area homeless and to assist them in obtaining self sufficiency.
The Shelter has approached you about contributing a substantial amount of money to support their operations. Before contributing your money, you would like to evaluate the Shelter's service efforts and accomplishments. Give an example of Input, Output, Outcome and Efficiency measures that you might find useful in assessing the Service Efforts and Accomplishments of the Area Homeless Shelter.

Accepted Answer

(a) Input measures - Dollars expended fo

Question 14

In a governmental audit the auditor is only required to report to the board or audit committee

Accepted Answer

A) True 
 B)False

Question 15

To compute the operating ratio-enterprise funds, one would need to look in the CAFR for the:

Accepted Answer

A)  Government-wide Statement of Net Assets 
B)  Proprietary funds Statement of Revenues, Expenses and Changes in Fund Net Assets 
C)  Both of the above 
D)  Neither of the above 
A)  Government-wide Statement of Net Assets 
B)  Proprietary funds Statement of Revenues, Expenses and Changes in Fund Net Assets 
C)  Both of the above 
D)  Neither of the above

Question 16

Service Efforts and Accomplishments Reporting is mandatory for not-for-profit organizations

Accepted Answer

A) True 
 B)False

Question 17

A tax exempt organization is required to pay income taxes on

Accepted Answer

A)  Profit that is earned 
B)  Unrelated business income 
C)  Investment gains or losses 
D)  Contributions received 
A)  Profit that is earned 
B)  Unrelated business income 
C)  Investment gains or losses 
D)  Contributions received

Question 18

To apply for tax-exempt status, an organization must complete an IRS Form 1023

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a prohibited activity for a Tax Exempt Organization?

Accepted Answer

A)  Make a Profit 
B)  Make financial contributions to a political candidate 
C)  File a tax return 
D)  Give money away 
A)  Make a Profit 
B)  Make financial contributions to a political candidate 
C)  File a tax return 
D)  Give money away

Question 20

Government financial audits must comply with the following:

Accepted Answer

A)  Generally Accepted Auditing Standards 
B)  Government Auditing Standards 
C)  Both A and B 
D)  Generally Accepted Accounting Principles 
A)  Generally Accepted Auditing Standards 
B)  Government Auditing Standards 
C)  Both A and B 
D)  Generally Accepted Accounting Principles

Which of the following is not a governmental audit opinion unit?

Organizations exempt under section 501(c)(3) of the Internal Revenue code are required to file Form 990 or in some cases an alternate form by the 15^th day of which month?

In a governmental audit the auditor:

Entities that are tax exempt under IRS Section 501(c)3 are required to provide copies, upon request, of the three most recent Form 990 returns.

A tax-exempt organization must pay income taxes on income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

The use of opinion units allows the auditor to

The GASB has authority to issue standards for Service Efforts and Accomplishments Reporting.

In a governmental audit the auditor is required to report directly to appropriate officials in addition to the board or audit committee.

Why is Service Efforts and Accomplishments reporting especially important for governmental and not-for-profit entities?

A ratio that measures solvency is:

Service Efforts and Accomplishments Reporting is best completed by using a variety of measures, which are reported consistently.

All of the following are differences between private sector auditing and governmental auditing except:

In a governmental audit the auditor is only required to report to the board or audit committee

To compute the operating ratio-enterprise funds, one would need to look in the CAFR for the:

Service Efforts and Accomplishments Reporting is mandatory for not-for-profit organizations

A tax exempt organization is required to pay income taxes on

To apply for tax-exempt status, an organization must complete an IRS Form 1023

Which of the following is a prohibited activity for a Tax Exempt Organization?

Government financial audits must comply with the following:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trust Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Filters

Exam 13: Auditing, Tax-Exempt Organizations, and Evaluating Performance

Which of the following is not a governmental audit opinion unit?

Organizations exempt under section 501(c)(3) of the Internal Revenue code are required to file Form 990 or in some cases an alternate form by the 15th day of which month?

In a governmental audit the auditor:

Entities that are tax exempt under IRS Section 501(c)3 are required to provide copies, upon request, of the three most recent Form 990 returns.

A tax-exempt organization must pay income taxes on income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

The use of opinion units allows the auditor to

The GASB has authority to issue standards for Service Efforts and Accomplishments Reporting.

In a governmental audit the auditor is required to report directly to appropriate officials in addition to the board or audit committee.

Why is Service Efforts and Accomplishments reporting especially important for governmental and not-for-profit entities?

A ratio that measures solvency is:

Service Efforts and Accomplishments Reporting is best completed by using a variety of measures, which are reported consistently.

All of the following are differences between private sector auditing and governmental auditing except:

In a governmental audit the auditor is only required to report to the board or audit committee

To compute the operating ratio-enterprise funds, one would need to look in the CAFR for the:

Service Efforts and Accomplishments Reporting is mandatory for not-for-profit organizations

A tax exempt organization is required to pay income taxes on

To apply for tax-exempt status, an organization must complete an IRS Form 1023

Which of the following is a prohibited activity for a Tax Exempt Organization?

Government financial audits must comply with the following:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trust Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Filters

Organizations exempt under section 501(c)(3) of the Internal Revenue code are required to file Form 990 or in some cases an alternate form by the 15^th day of which month?