Solved by verified expert :The purpose of this is to avoid duplication of efforts in conducting governmental auditsAnswerAICPA’s Professional StandardsGAO’s Government Auditing StandardsSingle Audit ActOMB Circular A-133
Which of the following is not a General Auditing Standard for financial audits?Answerprofessional judgmentfinancial stabilityindependencecompetence
The Yellow Book’s general standards are issued by theAnswerGAOFASBAICPAIRS
Which of the following is a Yellow Book standard in respect to independence?Answerauditors may only audit one government agency during a fiscal yearauditors should not audit their own workauditors may not advise in respect to computer installationauditors may not audit public corporations
Government Auditing Standards characterizes government engagements into which of the following three categories?Answerfinancial audits, compliance audits, and performance auditsfinancial audits, operational audits, and performance auditsfinancial audits, attest engagements, and performance auditsfinancial audits, efficiency and effectiveness audits, and compliance audits
This law requires that the wages of laborers and mechanics employed by the contractors of federally funded projects be paid at prevailing local wage rates.AnswerDavis-Bacon ActSarbanes-Oxley ActFederal Wage and Hour LawIRS Act
Federal funds must be used only for activities that are within the scope of the grant would be a(n)Answeroptional activityYelllow Book mandateallowable activityprohibited activity
In discerning the objectives of a program to be audited, the auditors should give the least credibility toAnswerthe legislation creating the programthe organization’s program budgetthe organization’s mission statement and strategic plancomments by the lower-level employees who actually depend on the program for their livelihoods.
The process of specifically directing federal funds to a particular program is called:Answerallocationearmarkingidentificationsubversion
Auditors who perform government audits must complete 80 hours of continuing professionaleducation every two years, of which ____ hours must be related directly to government auditing.Answer2430168
Government Auditing Standards must be adhered to in all financial audits except ofAnswerstate and local governmentsfederal agenciesfederally chartered bankspublic corporations
Which of the following is not reported upon in the Schedule of Findings and Questioned Costs?Answerreportable conditions related to internal controlmaterial noncompliance with provisions of laws, regulations, contracts, or grant agreementsmaterial examples of inefficiency and ineffectiveness in carrying out federally funded programsfederally reimbursed expenditures that are not adequately documentedIn reporting the results of a performance audit, it is appropriate for the auditors toAnswerconjecture as to the reasons for the program’s failure to achieve desired resultsinclude the auditors’ response to management’s objections to the auditors’ findingsprovide recommendations as to how the program can be improvedall of the above.
Which of the following statements is incorrect about GAO standards pertaining to performance audits?AnswerThe GAO mandates that programs be audited annually by accounting trained professionalsPerformance audits are normally carried out by internal audit departmentsPerformance audits focus on specific programsThe GAO does not specify when and how often a program, must be audited
‘‘Generally accepted government auditing standards’’ (GAGAS) refers to standards incorporated inAnswerthe Yellow Bookthe Yellow Book and OMB Circular A-133the Yellow Book and the AICPA’s Professional Standardsthe Yellow Book OMB Circular A-133, and the AICPA’s Professional Standards