Ball State ACC 430 Dr. Angelo Chapter
11 Questions and All Correct Answers.
Under the hierarchy of GAAP for a state and local government, which of the following has the
highest level of authority? - Answer AICPA Practice Bulletins if specifically made applicable to
state and local governments by the AICPA (and cleared by the GASB).
GASB Technical Bulletins.
GASB Implementation Guides.
(ALL OF THESE ARE CORRECT)
The scope of an auditing engagement is described in: - Answer An engagement letter.
Ramon Fuentes is the new head of the State Department of Motor Vehicles. He has observed
several situations that make him believe that there may be issues with the department's
internal controls. He wants to engage a CPA to provide him with assurance that the
department's internal controls are functioning as they should. This type of engagement is
called: - Answer An attestation engagement.
The GAGAS conceptual framework for independence should be employed: - Answer Prior to
accepting a nonaudit service engagement at an audited entity.
An additional auditing standard imposed by GAGAS when compared to GAAS is: - Answer
Documentation should be provided concerning evidence of supervisory review of work
performed.
Single audits performed pursuant to OMB's Uniform Guidance: - Answer Require the auditor
to use generally accepted government auditing standards when conducting the audit.
Under the GASB reporting model, materiality is determined: - Answer For opinion units.
An auditor must audit as a major program - Answer All Type A programs, unless the auditor
has identified one as low risk.
Dan Cole is the head of the county's Division of Animal Control. The division receives funding
from both the state and federal governments and is required to have its audit under GAGAS.
11 Questions and All Correct Answers.
Under the hierarchy of GAAP for a state and local government, which of the following has the
highest level of authority? - Answer AICPA Practice Bulletins if specifically made applicable to
state and local governments by the AICPA (and cleared by the GASB).
GASB Technical Bulletins.
GASB Implementation Guides.
(ALL OF THESE ARE CORRECT)
The scope of an auditing engagement is described in: - Answer An engagement letter.
Ramon Fuentes is the new head of the State Department of Motor Vehicles. He has observed
several situations that make him believe that there may be issues with the department's
internal controls. He wants to engage a CPA to provide him with assurance that the
department's internal controls are functioning as they should. This type of engagement is
called: - Answer An attestation engagement.
The GAGAS conceptual framework for independence should be employed: - Answer Prior to
accepting a nonaudit service engagement at an audited entity.
An additional auditing standard imposed by GAGAS when compared to GAAS is: - Answer
Documentation should be provided concerning evidence of supervisory review of work
performed.
Single audits performed pursuant to OMB's Uniform Guidance: - Answer Require the auditor
to use generally accepted government auditing standards when conducting the audit.
Under the GASB reporting model, materiality is determined: - Answer For opinion units.
An auditor must audit as a major program - Answer All Type A programs, unless the auditor
has identified one as low risk.
Dan Cole is the head of the county's Division of Animal Control. The division receives funding
from both the state and federal governments and is required to have its audit under GAGAS.
