True/False Questions
Government Auditing
1.The Single Audit Act is intended to provide assurance to the federal government that federal funds have been expended in accordance with laws and regulations, but does not include a report on internal controls.
2.Entities that expend $500,000 or less of federal funds are generally required to have a single audit.
3.The Single Audit Actis intended to provide assurance to the federal government that federal funds are protected through a system of internal controls and sound financial management practices.
4.The Sarbanes Oxley Act is intended to improve corporate governance and limit the services accounting firms may provide to their audit clients.
5.Governmental Auditing Standards identifies four categories of professional engagements: financial audits, performance audits, attestation engagements, and non-audit services.
6.The use of opinion units allows an auditor to issue different opinions on different statements, instead of issuing a single opinion.
7.Governmental attestation engagements must comply with both the Government Auditing Standards and with the AICPA’s attestation standards.
8.Governmental attestation engagements must comply with the Government Auditing Standards but are exempt from compliance with the AICPA’s attestation standards.
9.The Government Accounting Standards Board has authority for issuing Governmental Auditing Standards, but not auditing standards for private companies and not-for-profits.
10.The Government Accountability Office has authority for issuing Generally Accepted Auditing Standards.
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