ACCT 4421 Ch 11 & 12 SB Questions with
Complete Solutions
______ is behavior that is deficient or improper when compared with behavior that a prudent
person would consider reasonable and necessary. Correct Answ_Abuse
The election of a ______ applies when an auditee expends federal awards under only one
program or a cluster of related programs, and the program's laws, regulations, or grant
agreements do not require an entity-wide financial statement audit. Correct Answ_program-
specific audit
The Uniform Guidance defines a nonfederal entity as which of the following? Correct
Answ_- state/local government
- Native American tribe
- institution of higher education
- NFP organization
,The fundamental ethical principle of ______ refers to the collective well-being of those being
served by the auditor. Correct Answ_public interest
According to Subpart F of the OMB's Uniform Guidance, which of the following are general
audit requirements for the single audit act? Correct Answ_- An annual audit must be
performed encompassing the nonfederal entity's financial statements and schedule of
expenditures of federal awards.
- The auditor must determine whether the financial statements are presented fairly in all material
respects with GAAP.
- The auditor must determine if the schedule of expenditures of federal awards is presented fairly
in relation to the financial statements.
- The audit must be conducted by an external federal, state, or local auditor in accordance with
GAGAS.
The GAGAS standard of independence requires that the highest degree of ______ be maintained
by any auditor performing audits of federal, state, and local governments and not-for-profit
, entities that receive federal financial assistance so that the public is best served. Correct
Answ_integrity and objectivity
A(n) ______ is a federal award program selected for audit using procedures described in the
Uniform Guidance or by request of a federal awarding agency. Correct Answ_major program
Which of the following statements is correct? Correct Answ_In 1979, the OMB required that
federal fund audits be made on an organization-wide basis.
Single Audit Act of 1984 Correct Answ_Purposes:
- Improve the financial management of state and local governments with respect to federal
financial assistance programs.
- Establish uniform requirements for audits of federal financial assistance provided to state and
local governments.
- Promote the efficient and effective use of audit resources.
Complete Solutions
______ is behavior that is deficient or improper when compared with behavior that a prudent
person would consider reasonable and necessary. Correct Answ_Abuse
The election of a ______ applies when an auditee expends federal awards under only one
program or a cluster of related programs, and the program's laws, regulations, or grant
agreements do not require an entity-wide financial statement audit. Correct Answ_program-
specific audit
The Uniform Guidance defines a nonfederal entity as which of the following? Correct
Answ_- state/local government
- Native American tribe
- institution of higher education
- NFP organization
,The fundamental ethical principle of ______ refers to the collective well-being of those being
served by the auditor. Correct Answ_public interest
According to Subpart F of the OMB's Uniform Guidance, which of the following are general
audit requirements for the single audit act? Correct Answ_- An annual audit must be
performed encompassing the nonfederal entity's financial statements and schedule of
expenditures of federal awards.
- The auditor must determine whether the financial statements are presented fairly in all material
respects with GAAP.
- The auditor must determine if the schedule of expenditures of federal awards is presented fairly
in relation to the financial statements.
- The audit must be conducted by an external federal, state, or local auditor in accordance with
GAGAS.
The GAGAS standard of independence requires that the highest degree of ______ be maintained
by any auditor performing audits of federal, state, and local governments and not-for-profit
, entities that receive federal financial assistance so that the public is best served. Correct
Answ_integrity and objectivity
A(n) ______ is a federal award program selected for audit using procedures described in the
Uniform Guidance or by request of a federal awarding agency. Correct Answ_major program
Which of the following statements is correct? Correct Answ_In 1979, the OMB required that
federal fund audits be made on an organization-wide basis.
Single Audit Act of 1984 Correct Answ_Purposes:
- Improve the financial management of state and local governments with respect to federal
financial assistance programs.
- Establish uniform requirements for audits of federal financial assistance provided to state and
local governments.
- Promote the efficient and effective use of audit resources.
