Government Test Study Guide

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TEST 3 STUDY GUIDE
Student: ___________________________________________________________________________
1. An audit of a government, conducted in accordance with generally accepted auditing standards (GAAS), includes A. A determination of efficiency and effectiveness.
B. An examination of financial statements and underlying records for conformance with generally accepted accounting principles (GAAP).
C. Tests for compliance with laws and regulations.
D. Both B and C. 2. Audits of state and local governments may be performed by A. Independent CPAs.
B. State audit agencies.
C. Federal grantor agencies.
D. All of the above. 3. In the auditor 's report the financial statements on which the opinion is being expressed
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B. Specifies the financial statements that the auditor has examined.
C. States that all applicable accounting records were located and examined.
*D. States that the examination was made in accordance with generally accepted auditing standards. 13. Government Auditing Standards (GAS) A. Establish the same scope as GAAS, but use wording appropriate to governmental entities instead of business organizations.
B. Are set forth in the "Federal Government Red Book."
C. Establish more extensive standards than those found in GAAS.
D. Establish standard wording of auditor 's reports on governmental financial statements. 14. In which paragraph of the standard audit report does the auditor communicate to the user that certain combining fund information in the financial statements is not part of the basic financial statements, but that such information has been subjected to auditing procedures and, in his or her opinion, is fairly presented in all material respects in relation to the basic financial statements? A. Explanatory paragraph.
B. Scope paragraph.
C. Opening paragraph.
D. Opinion paragraph. 15. An unqualified audit opinion rendered on a governmental unit 's general purpose external financial statements means those statements A. Contain departures from GAAP that may make them misleading.
B. Have been audited by an auditor with limited qualifications.
C. Have been certified as free from
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