Government Test Study Guide
TEST 3 STUDY GUIDE
Student: ___________________________________________________________________________
1. An audit of a government, conducted in accordance with generally accepted auditing standards (GAAS), includes A. A determination of efficiency and effectiveness.
B. An examination of financial statements and underlying records for conformance with generally accepted accounting principles (GAAP).
C. Tests for compliance with laws and regulations.
D. Both B and C. 2. Audits of state and local governments may be performed by A. Independent CPAs.
B. State audit agencies.
C. Federal grantor agencies.
D. All of the above. 3. In the auditor 's report the financial statements on which the opinion is being expressed are specified in the A. Scope paragraph.
B. Opinion paragraph.
C. Opening paragraph.
D. Explanatory paragraph. 4. In audits of state and local government units which of the following paragraphs may not be required in the auditor 's report for every audit? A. Explanatory paragraph.
B. Scope paragraph.
C. Opening paragraph.
D. Opinion paragraph. 5. Government Auditing Standards (GAS) issued by the U.S. Comptroller General apply to A. Financial statement audits of federal organizations made by the Government Accountability Office.
B. Financial statement audits of federal programs made by state auditors.
C. Financial statements of federal grants made by independent CPAs.
D. All of the above. 6. The single audit concept refers to A. All audits of state and local government reporting entities.
B. Audits to determine efficiency and economy.
*C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133.
D. Financial and performance audits, and attestation engagements. 7. One of the primary purposes of the Single Audit Act of 1984 (amended in 1996) is to A. Detect fraud, waste and abuse in government entities.
B. To promote the efficient and
Student: ___________________________________________________________________________
1. An audit of a government, conducted in accordance with generally accepted auditing standards (GAAS), includes A. A determination of efficiency and effectiveness.
B. An examination of financial statements and underlying records for conformance with generally accepted accounting principles (GAAP).
C. Tests for compliance with laws and regulations.
D. Both B and C. 2. Audits of state and local governments may be performed by A. Independent CPAs.
B. State audit agencies.
C. Federal grantor agencies.
D. All of the above. 3. In the auditor 's report the financial statements on which the opinion is being expressed are specified in the A. Scope paragraph.
B. Opinion paragraph.
C. Opening paragraph.
D. Explanatory paragraph. 4. In audits of state and local government units which of the following paragraphs may not be required in the auditor 's report for every audit? A. Explanatory paragraph.
B. Scope paragraph.
C. Opening paragraph.
D. Opinion paragraph. 5. Government Auditing Standards (GAS) issued by the U.S. Comptroller General apply to A. Financial statement audits of federal organizations made by the Government Accountability Office.
B. Financial statement audits of federal programs made by state auditors.
C. Financial statements of federal grants made by independent CPAs.
D. All of the above. 6. The single audit concept refers to A. All audits of state and local government reporting entities.
B. Audits to determine efficiency and economy.
*C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133.
D. Financial and performance audits, and attestation engagements. 7. One of the primary purposes of the Single Audit Act of 1984 (amended in 1996) is to A. Detect fraud, waste and abuse in government entities.
B. To promote the efficient and