A6 - Governmental Auditing

Question 1

Government Auditing Standards published by the Government Accountability Office

Answer 1

Primarily apply to audits of federal financial assistance and government organizations.

Question 2

OMB Circular A-133 allows auditors to use:

Answer 2

A risk-based approach to determine major grants

Question 3

Per Governmental Auditing Standards, audit documentation should contain:

Answer 3

Sufficient information so that supplementary oral explanations are not required.

Question 4

What is the definition of a “subrecipient?”

Answer 4

A nonfederal entity that expends federal financial assistance administered by another entity.

Question 5

Under the Single Audit Act, materiality is determined:

Answer 5

Separately for each major federal financial assistance program.

Question 6

Government Audit Standards define 3 types of engagements:

Answer 6

Financial Audits, Attest Engagements, and Performance Audits.

Question 7

The primary purpose of establishing quality control policies and procedures for deciding whether to accept a new client is to:

Answer 7

Minimize the likelihood of association with clients whose management lacks integrity.

Question 8

Quality Control Standards:

Answer 8

(HELP ME)
Human resources
Engagement/client acceptance and continuance
Leadership responsibilities
Performance of the engagement

Monitoring
Ethical requirements