Question

Multiple Choice Questions
Identify the best answer for each of the following:
1. Generally accepted government auditing standards are issued by the
a. Office of Management and Budget.
b. Government Accountability Office.
c. Governmental Accounting Standards Board.
d. Auditing Standards Board.
e. Department of the Treasury.

2. In performing audits under the Single Audit Act, auditors must comply with
a. Generally accepted auditing standards (GAAS).
b. Generally accepted government auditing standards (GAGAS).
c. Both GAAS and GAGAS.
d. Neither GAAS nor GAGAS because the provisions of the Act override both.

3. Which of the following would not be an element of a Single Audit?
a. Determination of whether the government’s financial statements are fairly presented
b. Determination of whether the government has established adequate internal control systems
c. Determination of whether the government has complied with laws and regulations relating to major federal financial assistance programs
d. Determination of whether the government has accurately listed the federal financial assistance it has expended during the period in its schedule of expenditures of federal awards
e. None of the above

4. During the 20X9 fiscal year, the city of Metropolis Human Services Department spent $410,000 of a $450,000 federal grant. The only other Metropolis department or agency that received a federal grant during the fiscal year was its Police Department, which received a $295,000 federal grant and spent $195,000 of that grant. The city of Metropolis
a. Is exempt from all auditing requirements for the 20X9 fiscal year.
b. Is exempt from audit requirements for the 20X9 fiscal year but is required to keep adequate accounting records and to make them available for inspection and audit upon request.
c. Must either have a Single Audit or, at the grantor’s option, a Program-Specific Audit for the 20X9 fiscal year.
d. Must have a Single Audit for the 20X9 fiscal year.
e. None of the above.

5. Which of the following statements are accurate depictions of either performance audits or financial audits?
a. Performance audits do not focus on an entity’s conformity to GAAP while financial statement audits do have that primary focus.
b. Performance audits may provide information to improve program operations.
c. Performance audits, unlike financial audits, do not evaluate or address internal control issues.
d. All of the above are accurate depictions of performance and financial audit characteristics.
e. Items a and b only.
f. Items b and c only.

6. Consider the following facts and events concerning the city of Tampando and its airport (reported as an enterprise fund of the city):
• The city’s fiscal year end is December 31.
• The city was awarded a $9,000,000 construction cost-reimbursement construction grant in December 20X6.
• The city expended $9,000,000 for the project in November 20X7.
• The reimbursement was received in January 20X8.
The city must have a Single Audit because of grant expenditures in
a. 20X6.
b. 20X7.
c. 20X8.
d. All of these years.

7. The state of Oklabraska spent a total of $525,000 in federal financial assistance during its 20X8 fiscal year. It passed on $60,000 of these grants to the city of Lineman to help finance a pilot police training program. The city of Lineman also spent $300,000 in financial assistance directly from federal government agencies during fiscal 20X8. Which government(s) would be required to have a Single Audit for the 20X8 fiscal year?
a. The state of Oklabraska only
b. The city of Lineman only
c. Both the state of Oklabraska and the city of Lineman
d. Neither the state of Oklabraska nor the city of Lineman

8. In fiscal year 20X8, the city of Celtics received $7,000,000 in federal financial assistance and incurred $6,000,000 in federal financial assistance program expenditures. During the same fiscal year the city of Lakers received $12,000,000 in federal financial assistance and made $11,500,000 in federal financial assistance program expenditures. Each city received $310,000 for and expended $290,000 on a driver safety education program (not risky) financed by the U.S. Department of Transportation. This program would constitute a major federal assistance program
a. For Celtics but not for Lakers.
b. For Lakers but not for Celtics.
c. For both Celtics and Lakers.
d. For neither Celtics nor Lakers.

9. Cognizant agencies are assigned to
a. State governments.
b. Large local governments.
c. Small governments.
d. Both items a and b.
e. Both items b and c.
f. All governments.

10. The city of Lukeville (not a low-risk auditee) has three major federal assistance programs (none high-risk) with the following expenditures in 20X7:
Program Expenditures
A ......... $2,000,000
B ......... 1,000,000
C ......... 500,000
If the city has total federal assistance expenditures for 20X7 of $5,500,000, Lukeville’s Single Audit should include a study and evaluation of internal controls of the type conducted when intending to rely on those controls to reduce substantive testing for which programs?
a. Program A
b. Program B
c. Program C
d. Both A and B
e. All three programs



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  • CreatedOctober 25, 2014
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