Multiple Choice Questions
Government Auditing
67.What organization oversees the promulgation of Government Auditing Standards?
A)Government Accountability Office.
B)Governmental Accounting Standards Board.
C)Public Companies Accounting Oversight Board.
D)Government Accounting Oversight Committee.
68.Government auditing standards are commonly known as:
A)The Green Book.
B)The Yellow book.
C)The Blue Book.
D)The Red book.
69.Government financial audits must comply with the following:
A)Generally Accepted Auditing Standards.
B)Government Auditing Standards.
C)Both A and B.
D)Generally Accepted Accounting Principles.
70.Public sector audits differ from those of commercial businesses in which of the following ways?
A)The auditor is not required to be independent.
B)The auditor reports to outside agencies as well as management of the organization.
C)The auditor does not use sampling
D)All of the above.
71.The Single Audit Act intends that auditors conducting regular financial audits of state and local governments and not-for-profits organizations provide assurance to the federal government that:
A)Federal funds have been expended in accordance with laws and regulations.
B)Federal funds are protected through a system of internal controls and sound financial management practices.
C)Both A and B above.
D)Neither A nor B above.
72.Which of the following is
not
a difference between private sector auditing and governmental auditing?
A)The public availability of audit reports.
B)Testing of compliance with laws and regulations.
C)Governmental audits require auditor knowledge of government accounting and auditing.
D)None of the above; these are all differences between private sector auditing and governmental auditing.
73.Which of the following is
not
a type of governmental audit?
A)Attestation engagements.
B)Consulting engagements.
C)Financial audits.
D)Performance audits.
74.The use of opinion units allows the auditor to
A)Provide different opinions on different components of the reporting entity.
B)Only allow one opinion for entire entity not its components.
C)Plan the audit better and increase the effectiveness of substantive procedures.
D)Eliminate the need for Test of Controls.
75.Which of the following is a governmental audit that is concerned with examining, reviewing, or performing agreed upon procedures on a subject matter of an assertion and reporting on the results?
A)Financial Audit.
B)Attestation Engagement.
C)Performance Audits.
D)Nonaudit Services.
76.Government Auditing Standards identify which of the following categories of professional engagements:
A)Financial audits.
B)Financial audits and performance audits.
C)Financial audits, agreed-upon procedures and performance audits.
D)Financial audits, attestation engagements, performance audits, and nonaudit services.