ACCT 4421 Ch 11 & 12 HW UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Under the hierarchy of GAAP for a state and local government, which of the following has the
highest level of authority?
A. AICPA literature if specifically made applicable to state and local governments by the AICPA
(and cleared by the GASB).
B. GASB Technical Bulletins.
C. GASB Implementation Guides.
D. All of the given items have equal authority. - CORRECT ANSWER -
A government audit opinion is expressed for - CORRECT ANSWER - Specified opinion
units.
As executive director of a small not-for-profit, Paula Pascal has engaged an auditor to assess the
cash receipts process for donations. The objective is to obtain recommendations, rather than an
opinion or conclusion. This type of engagement is called - CORRECT ANSWER -A
performance audit.
The GAGAS conceptual framework for independence should be employed - CORRECT
ANSWER - Prior to accepting a nonaudit service engagement at an audited entity.
An additional auditing standard imposed by GAGAS when compared to GAAS is - CORRECT
ANSWER - The auditor must pinpoint the criteria, condition, cause, and effect of findings
to the extent that these elements are relevant and necessary to achieve the audit objectives.
Single audits performed pursuant to OMB's Uniform Guidance - CORRECT ANSWER -
Require the auditor to use generally accepted government auditing standards when conducting
the audit.
ACTUAL Exam Questions and CORRECT
Answers
Under the hierarchy of GAAP for a state and local government, which of the following has the
highest level of authority?
A. AICPA literature if specifically made applicable to state and local governments by the AICPA
(and cleared by the GASB).
B. GASB Technical Bulletins.
C. GASB Implementation Guides.
D. All of the given items have equal authority. - CORRECT ANSWER -
A government audit opinion is expressed for - CORRECT ANSWER - Specified opinion
units.
As executive director of a small not-for-profit, Paula Pascal has engaged an auditor to assess the
cash receipts process for donations. The objective is to obtain recommendations, rather than an
opinion or conclusion. This type of engagement is called - CORRECT ANSWER -A
performance audit.
The GAGAS conceptual framework for independence should be employed - CORRECT
ANSWER - Prior to accepting a nonaudit service engagement at an audited entity.
An additional auditing standard imposed by GAGAS when compared to GAAS is - CORRECT
ANSWER - The auditor must pinpoint the criteria, condition, cause, and effect of findings
to the extent that these elements are relevant and necessary to achieve the audit objectives.
Single audits performed pursuant to OMB's Uniform Guidance - CORRECT ANSWER -
Require the auditor to use generally accepted government auditing standards when conducting
the audit.
