AGA CGFM: Section 5, Chapter 1 – Focused on Audit
Practice Study Guide Questions with A level solution version
2024/2025
Auditors need to evaluate the threats both quantitatively and qualitatively. -
correct answer If the threats cannot be reduced to an acceptable level, auditors
should decline to perform the audit or terminate it if it has already started.
Included in the competence standard is the requirement that auditors complete at
least how many cpes every two years? - correct answer 80 hours of CPE every
two years that enhance their professional competency to conduct audits or
attestation engagements.
The general standard on quality control and assurance requires? - correct
answer audit agencies to establish a system of quality control that is designed to
provide reasonable assurance that the organization and its personnel
Comply with professional standards, and applicable legal and regularity
requirements.
External peerreview - correct answer GAGAS must have an external peer
review of their system of quality control and selected audits and attestation
engagements at least once every THREE years.
In addition to general standards, the Yellow Book has what other standards? -
correct answer In addition to general standards, the Yellow Book also has
fieldwork and reporting standards.
Yellow Book fieldwork standards - correct answer The Yellow Book incorporates
the AICPA financial audit fieldwork standards, but also sets forth additional
standards covering:
- auditor communication during planning;
, - considering the results of previous audits, attestation engagements
And other reviews;
- detecting material misstatements resulting from violations of provisions
Of contracts or grant agreements, or from abuse;
- developing elements of a finding; and
- audit documentation.
The Yellow Book has additional reporting requirements covering: - correct
answer - reporting the auditors' compliance with GAGAS;
- reporting on internal control and on compliance with laws, regulations, grant or
contract terms;
- reporting deficiencies in internal control and instance of fraud, noncompliance
and abuse;
- reporting the views of responsible officials;
- reporting confidential or sensitive information;
- distributing reports.
In a report containing an opinion or disclaiming an opinion on financial
statements, the auditors should describe: - correct answer - the scope of their
testing of internal controls over financial reporting;
- the scope of their testing of compliance with laws, regulations and
grant/contract terms; and
- the results of those tests or an opinion, if they did sufficient work for an opinion
on either internal controls or compliance.
The elements of a finding are? - correct answer 1) condition,
2) criteria,
3) cause and effect.
Practice Study Guide Questions with A level solution version
2024/2025
Auditors need to evaluate the threats both quantitatively and qualitatively. -
correct answer If the threats cannot be reduced to an acceptable level, auditors
should decline to perform the audit or terminate it if it has already started.
Included in the competence standard is the requirement that auditors complete at
least how many cpes every two years? - correct answer 80 hours of CPE every
two years that enhance their professional competency to conduct audits or
attestation engagements.
The general standard on quality control and assurance requires? - correct
answer audit agencies to establish a system of quality control that is designed to
provide reasonable assurance that the organization and its personnel
Comply with professional standards, and applicable legal and regularity
requirements.
External peerreview - correct answer GAGAS must have an external peer
review of their system of quality control and selected audits and attestation
engagements at least once every THREE years.
In addition to general standards, the Yellow Book has what other standards? -
correct answer In addition to general standards, the Yellow Book also has
fieldwork and reporting standards.
Yellow Book fieldwork standards - correct answer The Yellow Book incorporates
the AICPA financial audit fieldwork standards, but also sets forth additional
standards covering:
- auditor communication during planning;
, - considering the results of previous audits, attestation engagements
And other reviews;
- detecting material misstatements resulting from violations of provisions
Of contracts or grant agreements, or from abuse;
- developing elements of a finding; and
- audit documentation.
The Yellow Book has additional reporting requirements covering: - correct
answer - reporting the auditors' compliance with GAGAS;
- reporting on internal control and on compliance with laws, regulations, grant or
contract terms;
- reporting deficiencies in internal control and instance of fraud, noncompliance
and abuse;
- reporting the views of responsible officials;
- reporting confidential or sensitive information;
- distributing reports.
In a report containing an opinion or disclaiming an opinion on financial
statements, the auditors should describe: - correct answer - the scope of their
testing of internal controls over financial reporting;
- the scope of their testing of compliance with laws, regulations and
grant/contract terms; and
- the results of those tests or an opinion, if they did sufficient work for an opinion
on either internal controls or compliance.
The elements of a finding are? - correct answer 1) condition,
2) criteria,
3) cause and effect.
