Question 1

List and explain the five ethical concepts outlined by the Yellow Book.

Accepted Answer

1.Public interest which focuses auditors' attention on serving the citizenry and honoring the public trust 2.Integrity requires auditors to conduct their work with an attitude that is objective,fact- based and nonpartisan 3.Objectivity includes independence in fact and appearance and being free of conflict of interests 4.Proper use of government information,resources and position precludes auditors from using sensitive or classified information or resources for personal gain 5.Professional behavior includes auditors conducting their services in accordance with technical and professional standards

Question 2

Which of the following is true regarding the Single Audit Act and its amendments?

Accepted Answer

A)  A risk-based approach is used. 
B)  An opinion is required on compliance of all programs. 
C)  Both of the above 
D)  Neither of the above 
A)  A risk-based approach is used. 
B)  An opinion is required on compliance of all programs. 
C)  Both of the above 
D)  Neither of the above A

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

What organization oversees the Governmental Auditing Standards?

Accepted Answer

A)  Governmental Accountability Office 
B)  Financial Accounting Standards Board 
C)  AICPA 
D)  Government Accounting Oversight Committee 
A)  Governmental Accountability Office 
B)  Financial Accounting Standards Board 
C)  AICPA 
D)  Government Accounting Oversight Committee

Question 5

Which of the following would be considered a performance audit under the Government Auditing Standards?

Accepted Answer

A)  An investigation into whether a purchasing department of a government was operated efficiently. 
B)  An investigation into whether a social service agency of a state government improved the lives of its clients. 
C)  Both of the above. 
D)  Neither of the above. 
A)  An investigation into whether a purchasing department of a government was operated efficiently. 
B)  An investigation into whether a social service agency of a state government improved the lives of its clients. 
C)  Both of the above. 
D)  Neither of the above.

Question 6

Currently,a single audit is required for organizations receiving what amount of federal funds?

Accepted Answer

A)  > $100,000 
B)  > $300,000 
C)  > $500,000 
D)  > $700,000 
A)  > $100,000 
B)  > $300,000 
C)  > $500,000 
D)  > $700,000

Question 7

Which of the following activities may give rise to Unrelated Business Income Tax?

Accepted Answer

A)  Investment income arising from investment of unrestricted funds. 
B)  Sale of donated merchandise. 
C)  Advertising revenues from advertisements in a newsletter. 
D)  None of the above would give rise to unrelated business income. 
A)  Investment income arising from investment of unrestricted funds. 
B)  Sale of donated merchandise. 
C)  Advertising revenues from advertisements in a newsletter. 
D)  None of the above would give rise to unrelated business income.

Question 8

What is the objective of the single audit process?

Accepted Answer

Single audits are intended to provide as

Question 9

If a government failed to report infrastructure assets,the auditor could still express an unqualified opinion on the fund level financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not part of a financial audit?

Accepted Answer

A)  Forming judgments about internal controls. 
B)  Testing compliance with laws and regulations. 
C)  Assessing the degree to which program objectives have been met. 
D)  All of the above. 
A)  Forming judgments about internal controls. 
B)  Testing compliance with laws and regulations. 
C)  Assessing the degree to which program objectives have been met. 
D)  All of the above.

Question 11

Which of the following is true regarding the Internal Revenue Service's concern regarding tax-exempt organizations?

Accepted Answer

A)  Organizations are charging many of their program expenses to fundraising. 
B)  Executives of tax-exempt organizations are receiving excessive salaries and benefits. 
C)  Both (a) and (b) 
D)  Neither ( a) nor (b) 
A)  Organizations are charging many of their program expenses to fundraising. 
B)  Executives of tax-exempt organizations are receiving excessive salaries and benefits. 
C)  Both (a) and (b) 
D)  Neither ( a) nor (b)

Question 12

Which of the following would be an example of an attestation engagement?

Accepted Answer

A)  Report on cost under contract 
B)  Report on prospective financial information 
C)  Report on internal controls 
D)  All of the above 
A)  Report on cost under contract 
B)  Report on prospective financial information 
C)  Report on internal controls 
D)  All of the above

Question 13

Governments and other nonprofits receiving federal funds follow Governmental Auditing Standards and do not have to comply with AICPA Statements of Auditing Standards.

Accepted Answer

A) True 
 B)False

Question 14

Service Efforts and Accomplishments Reporting is voluntary for not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 15

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the five most recent annual form 990s.

Accepted Answer

A) True 
 B)False

Question 16

Assume the mission statement for the City Fire Department is as follows:
To minimize the combined cost of fire prevention and fire loss.
Give an example of Input,Output,Outcome,and Efficiency measures that might be used in Service Efforts and Accomplishments Reporting.

Accepted Answer

(a)Input measures - Dollars expended for

Question 17

To compute the unreserved fund balance/revenues-General Fund,one would need to look in the CAFR for the:

Accepted Answer

A)  Governmental funds Balance Sheet. 
B)  Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Governmental funds Balance Sheet. 
B)  Governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. 
C)  Both of the above. 
D)  Neither of the above.

Question 18

The Government Accountability Office has authority for issuing Governmental Auditing Standards.

Accepted Answer

A) True 
 B)False

Question 19

The three major user groups identified by the GASB are (1)citizen groups,(2)legislative and oversight officials,and (3)investors and creditors.

Accepted Answer

A) True 
 B)False

Question 20

Tax exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

Accepted Answer

A) True 
 B)False

List and explain the five ethical concepts outlined by the Yellow Book.

Which of the following is true regarding the Single Audit Act and its amendments?

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

What organization oversees the Governmental Auditing Standards?

Which of the following would be considered a performance audit under the Government Auditing Standards?

Currently,a single audit is required for organizations receiving what amount of federal funds?

Which of the following activities may give rise to Unrelated Business Income Tax?

What is the objective of the single audit process?

If a government failed to report infrastructure assets,the auditor could still express an unqualified opinion on the fund level financial statements.

Which of the following is not part of a financial audit?

Which of the following is true regarding the Internal Revenue Service's concern regarding tax-exempt organizations?

Which of the following would be an example of an attestation engagement?

Governments and other nonprofits receiving federal funds follow Governmental Auditing Standards and do not have to comply with AICPA Statements of Auditing Standards.

Service Efforts and Accomplishments Reporting is voluntary for not-for-profit organizations.

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the five most recent annual form 990s.

Assume the mission statement for the City Fire Department is as follows: To minimize the combined cost of fire prevention and fire loss. Give an example of Input,Output,Outcome,and Efficiency measures that might be used in Service Efforts and Accomplishments Reporting.

To compute the unreserved fund balance/revenues-General Fund,one would need to look in the CAFR for the:

The Government Accountability Office has authority for issuing Governmental Auditing Standards.

The three major user groups identified by the GASB are (1)citizen groups,(2)legislative and oversight officials,and (3)investors and creditors.

Tax exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters

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

List and explain the five ethical concepts outlined by the Yellow Book.

Which of the following is true regarding the Single Audit Act and its amendments?

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

What organization oversees the Governmental Auditing Standards?

Which of the following would be considered a performance audit under the Government Auditing Standards?

Currently,a single audit is required for organizations receiving what amount of federal funds?

Which of the following activities may give rise to Unrelated Business Income Tax?

What is the objective of the single audit process?

If a government failed to report infrastructure assets,the auditor could still express an unqualified opinion on the fund level financial statements.

Which of the following is not part of a financial audit?

Which of the following is true regarding the Internal Revenue Service's concern regarding tax-exempt organizations?

Which of the following would be an example of an attestation engagement?

Governments and other nonprofits receiving federal funds follow Governmental Auditing Standards and do not have to comply with AICPA Statements of Auditing Standards.

Service Efforts and Accomplishments Reporting is voluntary for not-for-profit organizations.

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the five most recent annual form 990s.

Assume the mission statement for the City Fire Department is as follows: To minimize the combined cost of fire prevention and fire loss. Give an example of Input,Output,Outcome,and Efficiency measures that might be used in Service Efforts and Accomplishments Reporting.

To compute the unreserved fund balance/revenues-General Fund,one would need to look in the CAFR for the:

The Government Accountability Office has authority for issuing Governmental Auditing Standards.

The three major user groups identified by the GASB are (1)citizen groups,(2)legislative and oversight officials,and (3)investors and creditors.

Tax exempt organizations are required to pay tax at the corporate or trust rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters