CPA AUD 1 supervisor exam-with
COMPLETE solutions-
2024/2025
AUD Question 1.
AICPA.AICPA.120606AUD
A government internal audit function is presumed to be free from
organizational independence impairments for reporting internally when the
head of the organization
A. Is not accountable to those charged with governance.
B. Performs auditing procedures that are consistent with generally accepted
accounting principles.
C. Is a line-manager of the unit under audit.
D. Is removed from political pressure to conduct audits objectively,
without fear of political reprisal.
Under GAGAS, a government internal audit function can be presumed to be
free from organizational impairments to independence for reporting
internally if the head of the audit organization meets all of the following criteria:
(a) is accountable to the head or deputy head of the government
entity or to those charged with governance; (b) reports the audit results both
to the head or deputy head of the government entity and to those
charged with governance; (c) is located organizationally outside the staff or
line-management function of the unit under audit; (d) has access
to those charged with governance; and (e) is sufficiently removed from
political pressures to conduct audits and report findings, opinions, and
conclusions objectively without fear of political reprisal.
AUD Question 2.
AICPA.120608AUD
The controller of a small utility company has interviewed audit firms
proposing to perform the annual audit of their employee benefit plan.
According to the guidelines of the Department of Labor (DOL), the selected
auditor must be
A. The firm that proposes the lowest fee for the work required.
B. Independent for purposes of examining financial information required
to be filed annually with the DOL.
C. Included on the list of firms approved by the DOL.
D. Independent of the utility company and NOT relying on its services.
COMPLETE solutions-
2024/2025
AUD Question 1.
AICPA.AICPA.120606AUD
A government internal audit function is presumed to be free from
organizational independence impairments for reporting internally when the
head of the organization
A. Is not accountable to those charged with governance.
B. Performs auditing procedures that are consistent with generally accepted
accounting principles.
C. Is a line-manager of the unit under audit.
D. Is removed from political pressure to conduct audits objectively,
without fear of political reprisal.
Under GAGAS, a government internal audit function can be presumed to be
free from organizational impairments to independence for reporting
internally if the head of the audit organization meets all of the following criteria:
(a) is accountable to the head or deputy head of the government
entity or to those charged with governance; (b) reports the audit results both
to the head or deputy head of the government entity and to those
charged with governance; (c) is located organizationally outside the staff or
line-management function of the unit under audit; (d) has access
to those charged with governance; and (e) is sufficiently removed from
political pressures to conduct audits and report findings, opinions, and
conclusions objectively without fear of political reprisal.
AUD Question 2.
AICPA.120608AUD
The controller of a small utility company has interviewed audit firms
proposing to perform the annual audit of their employee benefit plan.
According to the guidelines of the Department of Labor (DOL), the selected
auditor must be
A. The firm that proposes the lowest fee for the work required.
B. Independent for purposes of examining financial information required
to be filed annually with the DOL.
C. Included on the list of firms approved by the DOL.
D. Independent of the utility company and NOT relying on its services.
