Government Auditing Standards: Chapter 15 Homework Questions and

School: Kennesaw State University - Course: ACC 410 - Subject: Accounting

WEEK 10 - ACTIVITY: HOMEWORK CHAPTER 152 Chapter 15 Exercise 15-1. Select the best answer. 1.Government Auditing Standards must be adhered to in all financial audits of a.State and local governments b.Federal agencies c.Federally chartered banks d.All of the above 2."Generally accepted government auditing standards" (GAGAS) refers to standards incorporated in a.The Yellow Book b.The Yellow Book and OMB Circular A‐133 c.The Yellow Book and the AICPA's Professional Standards d.The Yellow Book, OMB Circular A‐133, and the AICPA's Professional Standards 3.Government Auditing Standards characterizes government engagements into which of the following three categories? a.Financial audits, compliance audits, and performance audits b.Financial audits, operational audits, and performance audits c.Financial audits, attest engagements, and performance audits d.Financial audits, efficiency and effectiveness audits, and compliance audits WEEK 10 - ACTIVITY: HOMEWORK CHAPTER 153 4.The Yellow Book's general standards apply a.Only to financial audits b.Only to financial audits and other attest engagements c.To performance engagements as well as to the financial audits and attest engagements d.To all professional engagements relating to accounting 5.Which of the following is least likely to impair the independence of a county auditor a.He is appointed by the county manager and reports to the manager b.His responsibilities include preparing the county's CAFR c.He is elected by the citizenry d.He receives an annual bonus only in years in which the county has a surplus, not a deficit 6.Per the GAO standards, auditors a.Must design their audit to provide reasonable assurance of detecting noncompliance with the terms of contracts or grant agreements b.Are not responsible for detecting noncompliance with the terms of contracts or grant agreements but must report such noncompliance if they become aware of it c.Must design their audit so that "it is more likely than not" they will detect noncompliance with terms of contracts or grant agreements d.Are responsible for detecting noncompliance with the terms of contracts or grant agreements only insofar as such noncompliance will have a material impact on the financial statements 7.The GAO's Green Book deals with a.Environmental issues