1. Reports issued by CPAs conducting audits subject to the GAO standards must include all of the...
Question:
1. Reports issued by CPAs conducting audits subject to the GAO standards must include all of the following except:
a. A description of the scope of compliance testing.
b. A description of the scope of internal control testing.
c. A description of any irregularities and illegal acts found.
d. A description of any sampling methodology and sampling plans used.
2. The GAO publication Government Auditing Standards (commonly known as the Yellow Book) is applicable in which of the following audit situations?
a. To independent CPAs conducting a performance audit of a governmental entity that receives no federal financial assistance.
b. To independent CPAs auditing a nongovernmental entity that receives federal financial assistance.
c. To independent CPAs auditing a governmental entity that receives no federal financial assistance.
d. To state auditors auditing a local government that does not receive federal financial assistance.
3. The Schedule of Findings and Questioned Costs should include all of the following except
a. Information on types of opinions expressed on the financial statement.
b. Information on all weaknesses in internal control.
c. List of material noncompliance.
d. Known questioned costs.
4. The Single Audit Act distinguishes between major and non major federal programs. One factor that distinguishes a major from a non major program is inherent risk. Which of the following is NOT a characteristic of “inherent risk”?
a. Significant prior audit findings.
b. Significant violation of the terms of a specific grant due to a misunderstanding of the requirements.
c. Weakness in the entity's internal controls.
d. Lack of oversight by federal agencies.
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