ACC 501 CHAPTER 11 (LATEST UPDATE) REAL QUESTIONS
AND VERIFIED ANSWERS |100% CORRECT | ALREADY
GRADED A
generally accepted auditing standards Ans✓✓✓GAAS
GAAS Ans✓✓✓standards set by the Auditing Standards Board (ASB)
of the AICPA
engagement letter Ans✓✓✓provides a written record of the agreement
and is essential for the protection of both parties
materiality Ans✓✓✓an auditor's judgment as to the level at which the
quantitative or qualitative effects of misstatements will have a
significant impact on users' evaluations
opinion units Ans✓✓✓1) governmental activities
2) business-type activities
3) aggregate discretely presented component units
4) each major governmental and enterprise fund
5) the aggregate remaining fund information (nonmajor governmental
and enterprise funds, the internal service fund type, and the fiduciary
fund types)
generally accepted government auditing standards Ans✓✓✓GAGAS
, GAGAS Ans✓✓✓set forth and explained in the publication Government
Auditing Standards; the document has historically been referred to as the
yellow book
financial audits Ans✓✓✓financial statement audits, special reports,
reviews of interim financial information, letters to underwriters,
compliance audits, and service organization audits
attestation engagements Ans✓✓✓services related to providing various
levels of assurance on other financial or nonfinancial matters
performance audits Ans✓✓✓(operational); independent assessments of
the performance and the management of the entity, program, service, or
activity against objective criteria
nonaudit work Ans✓✓✓performed solely for the benefit of the entity
requesting the work and does not provide a basis for conclusions,
recommendations, or opinions as would a financial audit, attestation
engagement, or performance audit
single audit Ans✓✓✓audits that are made on an organization-wide basis
rather than on a grant-by-grant basis
program-specific audit Ans✓✓✓when an auditee expends federal
awards under only one program or a cluster of related programs, and the
AND VERIFIED ANSWERS |100% CORRECT | ALREADY
GRADED A
generally accepted auditing standards Ans✓✓✓GAAS
GAAS Ans✓✓✓standards set by the Auditing Standards Board (ASB)
of the AICPA
engagement letter Ans✓✓✓provides a written record of the agreement
and is essential for the protection of both parties
materiality Ans✓✓✓an auditor's judgment as to the level at which the
quantitative or qualitative effects of misstatements will have a
significant impact on users' evaluations
opinion units Ans✓✓✓1) governmental activities
2) business-type activities
3) aggregate discretely presented component units
4) each major governmental and enterprise fund
5) the aggregate remaining fund information (nonmajor governmental
and enterprise funds, the internal service fund type, and the fiduciary
fund types)
generally accepted government auditing standards Ans✓✓✓GAGAS
, GAGAS Ans✓✓✓set forth and explained in the publication Government
Auditing Standards; the document has historically been referred to as the
yellow book
financial audits Ans✓✓✓financial statement audits, special reports,
reviews of interim financial information, letters to underwriters,
compliance audits, and service organization audits
attestation engagements Ans✓✓✓services related to providing various
levels of assurance on other financial or nonfinancial matters
performance audits Ans✓✓✓(operational); independent assessments of
the performance and the management of the entity, program, service, or
activity against objective criteria
nonaudit work Ans✓✓✓performed solely for the benefit of the entity
requesting the work and does not provide a basis for conclusions,
recommendations, or opinions as would a financial audit, attestation
engagement, or performance audit
single audit Ans✓✓✓audits that are made on an organization-wide basis
rather than on a grant-by-grant basis
program-specific audit Ans✓✓✓when an auditee expends federal
awards under only one program or a cluster of related programs, and the
