Government Auditing Standards

Question 1

When do the general and specific requirements of the Government Auditing Standards apply?

Answer 1

1. )General requirements apply to all federal financial programs.
2. )Specific requirements apply by statutory (legislative) requirement to a particular program.

Question 2

Who is the issuer of Government Auditing Standards, also known as Generally Accepted Government Auditing Standards?

Answer 2

The U.S. Government Accountability Office (GAO) under the authority of the U.S. Comptroller General, through the GAO’s “Yellow Book”

Question 3

List the three main differences in Government Auditing Standards relative to the AICPA’s Statements on Auditing Standards.

Answer 3

1. )Government Auditing Standards require a written report on internal control.
2. )Government Auditing Standards require a written report on compliance with applicable laws and regulations.
3. )Government Auditing Standards require the auditor to report any known instances of illegal acts that could result in criminal prosecution.

Question 4

What are the requirements of the Single Audit Act?

Answer 4

It requires a single coordinated audit of the aggregate federal financial assistance provided to the state and local governmental entity with emphasis on defined “major” assistance programs), including:

1. )An audit of the entity’s financial statements
2. )Additional reporting on compliance with applicable laws and regulations
3. )Additional reporting on internal control

Question 5

Describe the auditor’s responsibility regarding communications of “significant deficiencies” under Government Auditing Standards.

Answer 5

The auditor should obtain a response from officials of the entity as to their views about those findings and include a copy of any written response in the auditor’s report.

Question 6

When must a state or local governmental entity be audited according to the Single Audit Act of 1984, as amended?

Answer 6

When a state or local governmental entity spends federal assistance aggregating at least $750,000 in a fiscal year