Select the key term that relate to auditing of governmental and not-for-profit organizations from the list that best matches with the following definition.

1. A process that culminates in an opinion that financial statements present fairly an entity’s financial position and results of operations in conformity with GAAP.

2. An auditor’s judgment as to level at which the quantitative or qualitative effect of misstatements will have a significant impact on user’s evaluations.

3. Standards prescribed by the AICPA to provide guidance for planning, conducting, and reporting on audits by CPAs.

4. Professional services related to internal control, compliance, MD&A presentation, allow ability and reasonableness of reposed contract amounts, final contract costs, and reliability of performance measures

5. Units of the government on which the auditor expresses an opinion (e.g., governmental activities, each major governmental fund, etc.)

Answer rating: 100% (QA)

Sentence Answer 1 A process that culminates in an opinion that financial statements pres... View the full answer