Section 1 - Government Environment

Question 1

What is GASB?

Answer 1

The Governmental Accounting Standard Board (GASB) is the independent organization that established and improves standards of accounting and financial reporting for U.S. State and local governments. Recognized by governments, the accounting industry, and the capital markets as the official source of generally accepted accounting principles (GAAP) for state and local governments.

Question 2

What entity defines GAAP for national government?

Answer 2

FASAB

Question 3

Report that combines financial data & performance measures

Answer 3

Performance and Accountability Report (PAR)

Question 4

Reports that link financial resources to the service outputs & outcomes achieved with those resources

Answer 4

Performance Report

Question 5

What entity establishes standards for financial audits, generally?

Answer 5

AICPA

Question 6

3 differences between internal & external reports

Answer 6

Timing, purpose, and structure

Question 7

What are the four (4) fiscal and monetary powers of governments, there are 4

Answer 7

Tax citizens and corporate entities
Establish budgets and spend public funds
Borrow funds for government operations and capital investments
Create money (only at national level)

Question 8

What act calls for the establishment of government wide financial data? standards

Answer 8

Data Transparency & Accountability Act (DATA)

Question 9

What act calls for the establishment of government wide financial data standards

Answer 9

Referendum

Question 10

What are the two types of Special Purpose Local Governments?

Answer 10

School District

Special District

Question 11

Citizen action that enables voters elected officials from office?

Answer 11

Recall

Question 12

Type of government entity that performs one or two functions

Answer 12

Special purpose

Question 13

Type of government entity that performs multiple functions

Answer 13

General Purpose

Question 14

Describe the distinction between policy and administration.

Question 15

What is the difference between local charters and local ordinances.

Answer 15

Charter = Constitution

Ordinance = Law

Question 16

What are the three types general purpose local governments?

Answer 16

County

Municipality

Township

Question 17

Who issues the Yellow Book?

Answer 17

GAO

Question 18

Another term for General Accepted government Auditing Standards (GAGAS)

Answer 18

The Yellow Book

Question 19

Three (3) types of external audits

Answer 19

Financial

Attestation Engagement

Performance Audits

Question 20

Type of external audit that provides reasonable assurance on whether financial statements are presented fairly in conformity with GAAP

Answer 20

Financial audit

Question 21

Type of government entity that blends characteristics of government and non-for-profit organizations

Answer 21

Quasi-Governmental (Government Corporation)

Question 22

What is an attestation engagement?

Answer 22

Examine, review or perform and agreed upon procedures on a limited subject matter and report on the results; can be financial or non-financial.

Question 23

Principle that taxes should treat tax payers fairly

Answer 23

Tax Equity

Question 24

Collection efficiency in tax collection

Answer 24

Cost of collecting the tax should be minimal compared to the revenue generated.

Question 25

Different tax payers with the same income level should pay the same amount of tax.

Answer 25

Horizontal Equity

Question 26

Tax payers with different income level, should pay different amount of tax.

Answer 26

Vertical Equity

Question 27

U.S. Income Tax is progressive or regressive?

Answer 27

Progressive

Question 28

Sales tax is progressive or regressive?

Answer 28

Regressive: single sales tax rate applies to everyone.

Question 29

How government accomplish social goals with tax?

Answer 29

Exemptions

Deductions

Credits

Deferrals

Question 30

The ADA Code Four (4) Principles

Answer 30

1. Public Interest
2. Professionalism and Integrity.
3. Objectivity
4. Confidentiality

Question 31

Principle 1 of AGA Code of Ethics?

Answer 31

AGA members and CGFMs shall Serve and Support the Public Interest.

The public consists of citizens, taxpayers, customers, employers, employees, investors, the business and financial sector, and others who rely on the objectivity and integrity of government accountability professionals.

Question 32

Principle 2 of AGA Code of Ethics?

Answer 32

AGA members and CGFMs shall Maintain the Highest Standards of Professionalism and Integrity.

Government accountability professionals shall work at the highest standards of professionalism, attain the highest levels of performance, and meet the public interest principle. Accordingly, AGA members must adhere to these rules.

Question 33

Principle 3 of AGA Code of Ethics?

Answer 33

AGA members and CGFMs shall remain Objective in carrying out their duties.

Objectivity requires being fair and not allowing prejudice, bias, conflict of interest, or influence of others to affect decision-making. Accordingly, AGA members must adhere to these rules.

Question 34

Principle 4 of AGA Code of Ethics?

Answer 34

AGA members and CGFMs shall carefully maintain and protect confidential information.