CDFM Module 3 competency 4 – Auditing questions
with verified answers
Can an auditor claim cost savings if their recommendation leads to reduction of
approved program? Ans✓✓✓ Yes
do auditors verify computer based data is accurate? Ans✓✓✓ Yes - they should
obtain evidence that it is accurate. Often done by performing physical inventory.
Indepdent verification necessary regardless of whether date are provided to
aduditors or if auditors extract them
^^ will be scenario
trust but verify is common theme here (3.4.26)
do performance audit objectives differ based on audit org? Ans✓✓✓ Yes,
typically. common generic objective is to assess the adequacy of performance
and, if poor, appraise consequences and determine cause and actions that might
be taken to improve performance.
Does the GAO perform audits? Ans✓✓✓ Yes - part of legislative branch
GAO, by law, is required to audit the consolidated FS for the entire federal
government
How can internal controls affect an audit? Ans✓✓✓ Based on auditor's internal
control assessment, they may modify the nature, timing, and extent of their audit
,procedures. Poorly controlled aspects of a program have higher risk of failure, so
auditors may focus on those. May limit testing in areas that are well controlled.
How do audit organizations select the areas for audit coverage? Ans✓✓✓ By
identifying:
1. Regulatory and statutory requirements
2. Specific concerns of management and congress
3. high-risk areas
How does GPRA affect federal overall audit plan? Ans✓✓✓ planning influenced
by GPRA because requires fed agencies to be more effective in planning,
budgeting, executing, evaluating, and accounting for federal programs. Intended
to change way many programs operate and are managed. DoD IA orgs. should
develop strat. plans that align their goals with parent orgs.
How is quality control achieved in DoD Ans✓✓✓ through establishment of QC
program based on GAGAS guidance
Provides reasonable assurance that doD auditors have complied with applicable
auditing standards and doD audit policies
If there is excess equipment that has not been evaluated for value by the aduitor,
should it be expressed as having monetary value on an audit report? Ans✓✓✓
No
In addition to reporting on financial statement audits, performed in accordance
with GAGAS, what types of reports are required? Ans✓✓✓ Reports on ICOFR
, Is the risk of fraud and abuse considered across all audits? Ans✓✓✓ Yes
In FS audits, interested in non compliance with there may be a material impact
In attestation, practitioner (eq. to auditor) reviews for errors, fraud, illegal act,
violations of contracts or grant agreements, or abuse that could have material
effect on subject matter
List the 4 FIAR waves Ans✓✓✓ 1. Appropriations received audits (been
completed)
2. Statement of Budgetary Resources Audit (including FBwT reconciliation)
3. Mission Critical Asset E&C Audit
4. Full financial statements audit
Summarize what a attestation audit entails Ans✓✓✓ Auditors issue opinion as
result of examination. Consclusion as the result of a review, and, a report as the
result of an agreed-upon procedures relating to a subject matter or assertion
made by management
Summarize what a financial audit entails Ans✓✓✓ They determine whether
1. financial info presented in accordance with established or stated criteria
2. adhered to specific financial compliance requirements
3. An intenral control structure over financial reporting and/or safeguarding of
assets tha tis suitably designed and implemented to achieve control objectives
with verified answers
Can an auditor claim cost savings if their recommendation leads to reduction of
approved program? Ans✓✓✓ Yes
do auditors verify computer based data is accurate? Ans✓✓✓ Yes - they should
obtain evidence that it is accurate. Often done by performing physical inventory.
Indepdent verification necessary regardless of whether date are provided to
aduditors or if auditors extract them
^^ will be scenario
trust but verify is common theme here (3.4.26)
do performance audit objectives differ based on audit org? Ans✓✓✓ Yes,
typically. common generic objective is to assess the adequacy of performance
and, if poor, appraise consequences and determine cause and actions that might
be taken to improve performance.
Does the GAO perform audits? Ans✓✓✓ Yes - part of legislative branch
GAO, by law, is required to audit the consolidated FS for the entire federal
government
How can internal controls affect an audit? Ans✓✓✓ Based on auditor's internal
control assessment, they may modify the nature, timing, and extent of their audit
,procedures. Poorly controlled aspects of a program have higher risk of failure, so
auditors may focus on those. May limit testing in areas that are well controlled.
How do audit organizations select the areas for audit coverage? Ans✓✓✓ By
identifying:
1. Regulatory and statutory requirements
2. Specific concerns of management and congress
3. high-risk areas
How does GPRA affect federal overall audit plan? Ans✓✓✓ planning influenced
by GPRA because requires fed agencies to be more effective in planning,
budgeting, executing, evaluating, and accounting for federal programs. Intended
to change way many programs operate and are managed. DoD IA orgs. should
develop strat. plans that align their goals with parent orgs.
How is quality control achieved in DoD Ans✓✓✓ through establishment of QC
program based on GAGAS guidance
Provides reasonable assurance that doD auditors have complied with applicable
auditing standards and doD audit policies
If there is excess equipment that has not been evaluated for value by the aduitor,
should it be expressed as having monetary value on an audit report? Ans✓✓✓
No
In addition to reporting on financial statement audits, performed in accordance
with GAGAS, what types of reports are required? Ans✓✓✓ Reports on ICOFR
, Is the risk of fraud and abuse considered across all audits? Ans✓✓✓ Yes
In FS audits, interested in non compliance with there may be a material impact
In attestation, practitioner (eq. to auditor) reviews for errors, fraud, illegal act,
violations of contracts or grant agreements, or abuse that could have material
effect on subject matter
List the 4 FIAR waves Ans✓✓✓ 1. Appropriations received audits (been
completed)
2. Statement of Budgetary Resources Audit (including FBwT reconciliation)
3. Mission Critical Asset E&C Audit
4. Full financial statements audit
Summarize what a attestation audit entails Ans✓✓✓ Auditors issue opinion as
result of examination. Consclusion as the result of a review, and, a report as the
result of an agreed-upon procedures relating to a subject matter or assertion
made by management
Summarize what a financial audit entails Ans✓✓✓ They determine whether
1. financial info presented in accordance with established or stated criteria
2. adhered to specific financial compliance requirements
3. An intenral control structure over financial reporting and/or safeguarding of
assets tha tis suitably designed and implemented to achieve control objectives
