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

A local government has four federal grants.Expenditures amounted to $1,000,000 during the year ended June 30,2012,as follows: A.Which grants would the auditor be required to audit,assuming the government is not found to be low risk? B.Which grants would the auditor be required to audit,assuming the government is found to be low risk?

Government financial audits must comply with the following:

The IRS announced that it considers tax-exempt organizations to be one of its four highest enforcement priorities.What are the three areas of concern for the IRS?

The program expense ratio is calculated as follows: Total expenses / (Program service expenses + supporting service expenses).

The purpose of the Unrelated Business Income Tax is to eliminate advantages that tax-exempt organizations have over commercial enterprises providing goods or services for sale.

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

Performance audits of a tax-exempt organization are undertaken to assess which of the following?

Which of the following items,helpful for analysis,could be found in the statistical section of the CAFR?

In a disclaimer of opinion,the auditor states that no opinion is being expressed.

Describe the types of audit opinions that may be issued on a governmental or not-for-profit financial report.

The program expense ratio is calculated as Program service expenses / Total expenses.

Supporting expenses are included in the denominator of the program expense ratio.

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.

A government publishes information about its fire department.What type of service efforts and accomplishments measure would Fire Loss per Capita represent?

The program expense ratio is calculated as follows: Total expenses / Program service.Expenses.

Describe the different types of governmental audit and attestation engagements.

A tax exempt organization is required to pay income taxes on

What is an "opinion unit" and what are the five opinion units for state and local governments?

In order to compute the operating ratio-enterprise funds,one would look in the CAFR in which of the following sections?

Which of the following is not considered to be a major user group by the GASB?