CGFM Exam 3 Questions & Answers
(Grade A+)
What is an audit? -
correct answer ✅an independent, systematic, objective, unbiased
assessment that provides answers to a set of questions (audit
objectives).
auditors assess whether financial statements are presented fairly in
all material respects, providing reasonable assurance of their
correctness
Financial Audits -
correct answer ✅Provides reasonable assurance on whether
financial statements are presented fairly in conformity with GAAP.
in all material respects - the financial conditions, results, and use of
resources of the entity
Performance Audit Questions -
correct answer ✅Was this organization operating in an
economical manner?
Did this organization achieve its program objectives?
Did the cost claimed under a federal grant conform to the grant
requirements?
Was the program operated in compliance with laws and
regulations?
, CGFM Exam 3 Questions & Answers
(Grade A+)
Material -
correct answer ✅in the context of whether a reasonable and
informed third party would consider that an omission or
misstatement would change their opinions regarding the auditor's
conclusions
Significance -
correct answer ✅The relative importance of a matter within the
context in which it is being considered
Auditors may conduct the following types of engagements -
correct answer ✅financial audits
assentation engagement and reviews of financial statements
performance audits
Financial Audits -
correct answer ✅auditors express an opinion on where the
statemtn preset fairly in all material respects the finanical position
of the auditee at a point in time for the fiscal period then ended
(Grade A+)
What is an audit? -
correct answer ✅an independent, systematic, objective, unbiased
assessment that provides answers to a set of questions (audit
objectives).
auditors assess whether financial statements are presented fairly in
all material respects, providing reasonable assurance of their
correctness
Financial Audits -
correct answer ✅Provides reasonable assurance on whether
financial statements are presented fairly in conformity with GAAP.
in all material respects - the financial conditions, results, and use of
resources of the entity
Performance Audit Questions -
correct answer ✅Was this organization operating in an
economical manner?
Did this organization achieve its program objectives?
Did the cost claimed under a federal grant conform to the grant
requirements?
Was the program operated in compliance with laws and
regulations?
, CGFM Exam 3 Questions & Answers
(Grade A+)
Material -
correct answer ✅in the context of whether a reasonable and
informed third party would consider that an omission or
misstatement would change their opinions regarding the auditor's
conclusions
Significance -
correct answer ✅The relative importance of a matter within the
context in which it is being considered
Auditors may conduct the following types of engagements -
correct answer ✅financial audits
assentation engagement and reviews of financial statements
performance audits
Financial Audits -
correct answer ✅auditors express an opinion on where the
statemtn preset fairly in all material respects the finanical position
of the auditee at a point in time for the fiscal period then ended
