87. Which of the following would be an example of an attestation engagement?
A)Report on cost under contract
B)Report on prospective financial information
C)Report on internal controls
D)All of the above
88. Under the terms of the Single Audit Act and its amendments, what percentage of federal awards expenditures must be selected for audit?
A)High Risk Auditee: 100%; Low Risk Auditee: 50%
B)High Risk Auditee: 100%; Low Risk Auditee: 25%
C)High Risk Auditee: 50%; Low Risk Auditee: 25%
D)High Risk Auditee: 50%; Low Risk Auditee: 0%
89. Which of the following is not part of a financial audit?
A)Forming judgments about internal controls
B)Testing compliance with laws and regulations
C)Providing an opinion on compliance with GAAP
D)Assessing the degree to which program objectives have been met
90. The term “opinion unit” refers to which of the following:
A) A division of a CPA firm
B)A state or local government together with its component units
C)A level of reporting of a government that requires a separate materiality level
D)One of the four statements required in the second paragraph of an unqualified audit opinion
91. Which of the following audit opinions is issued when a government fails to comply with generally accepted accounting principles?
A)Qualified
B)Adverse
C)Either of the above, depending on the severity of the noncompliance
D)Neither (a) or (b) above
92. Which of the following provisions of the Sarbanes-Oxley Act already existed in governmental auditing standards?
A)Auditors are required to report deficiencies in the design or operation of internal controls.
B)Not-for-profit organizations are required to establish audit committees composed of non-management board members.
C)All nonaudit services performed by the auditors must be approved by the audit committee.
D)All of the above.
93.Which type of audit opinion is appropriate if an auditor is not deemed to be independent?
A)Disclaimer of opinion.
B)Unqualified.
C)Qualified.
D)Adverse.
94.If an auditee is not considered low-risk, what percent of federal funds expended are auditors required to express an opinion on?
A)100%.
B)70%.
C)50%.
D)25%.
95.Currently, a single audit is required for organizations receiving what amount of federal funds?
A)> $100,000.
B)> $300,000.
C)> $500,000.
D)> $700,000.
96.In a governmental audit the auditor:
A)Is required to report directly to appropriate officials in addition to the board or audit committee
B)Is only required to report to the board or audit committee
C)Is only required to report directly to the appropriate officials
D)None of the above