A6 - Government Auditing

Question 1

According to Circular A-133, how much must an entity expend of federal funding in order to be required to have an audit?

Answer 1

Over $500,000

Question 2

According to Circular A-133, how much must an entity expend of federal funding in order for materiality levels to be considered separately for that major program?

Answer 2

Over $300,000

Question 3

T/F: Under GAGAS, the auditor accepts more responsibility than under GAAS

Answer 3

True; due to the fact that the auditor also reports on compliance with laws, regulations, et cetera

Question 4

What opinion should be issued when the auditor detects noncompliance with requirements that have a material effect on a major federal financial assistance program?

Answer 4

A modified (“except for”) or adverse opinion

Question 5

T/F: Under Government Auditing Standards, audit documentation should contain sufficient information so that supplementary oral explanations are not required

Answer 5

True