20. Governmental Audits

Question 1

Generally accepted government auditing standards (GAGAS) /should/ to indicate what?

Answer 1

A presumptively mandatory requirement.

Question 2

What are the ethical principles that guide the work of auditors who conduct audits in accordance with GAGAS?

Answer 2

(1) the public interest; (2) integrity; (3) objectivity; (4) proper use of government information, resources, and positions; and (5) professional behavior.

Question 3

How does the Office of Management and Budget (OMB) define a subrecipient?

Answer 3

as a nonfederal entity that expends federal awards received from another entity, often another governmental body, to carry out a federal program.

Question 4

What are the auditor’s objective in a compliance audit?

Answer 4

Express an opinion whether the entity maintained compliance with applicable requirements.

Question 5

According to an additional requirement in Government Auditing Standards, the elements of a finding for a financial audit include

Answer 5

Condition, cause, and effect.