Chapter 20

Question 1

In a financial audit under Government Auditing Standards, procedures have disclosed material instances of non compliance with regulations. The report should

Answer 1

Place the finding in proper perspective.

To give the readers a basis for judging the prevalence and consequences of deficiencies in internal control, fraud, noncompliance, and abuse the instances identified should be related to the population or the number of cases examined and be quantified in terms of monetary amounts, if appropriate.

Question 2

According to the additional requirement in Government auditing standards, the element of a finding for a financial audit include;

Answer 2

Condition, cause, and effect or potential effect.