Select from the option list provided whether each activity would be categorized as a financial audit, an attestation engagement, or a performance audit in accordance with Government Auditing Standards. Each choice may be used once, more than once, or not at all.
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- Which of the following is the least important consideration for a governmental auditor whoneeds to be objective when auditing and reporting on an agency’s achievement of programgoals?a. Measure the actual output results of agency activities.b. Compare the agency’s actual output results to quantitative goal standards.c. Perform a comprehensive review of management controls.d. Determine quantitative standards that describe goals the agency was supposed to achieve.Compare and contrast the objectives of financial, compliance, operational audit and government audit. Include in your answer who performs each type of audit.GAO Auditor Independence. The GAO reporting standards for performance audits statethat each report should include “recommendations for action to correct the problem areasand to improve operations.” For example, an audit of the Washington Metropolitan AreaTransit Authority found management decision deficiencies affecting some $230 millionin federal funds. The GAO auditors recommended that the transit authority could improveits management control over rail car procurement through better enforcement of contractrequirements and development of a master plan to test cars.Suppose the transit authority accepted and implemented specific recommendations madeby the GAO auditors.Required:Do you believe these events would be enough to impair the independence of the GAO auditors in a subsequent audit of the transit authority? Explain and tell whether it makes any difference to you that the same or different person performs both the first and subsequent audits
- These are standards against which the assertions or representations are judged. They maybe specific rules prescribed by a legislative body, budgets and other measures of performance set by management. A. Audit objectives B. Government regulations C. Established criteria D. Audit assertionsGenerally accepted government auditing standards (GAGAS) can apply to a: Group of answer choices 1: All of the above. 2: Attestation engagement. 3: Performance audit. 4: Financial audit.Governmental auditing can extend beyond audits of financial statements to include audits ofan agency’s efficient and economical use of resources anda. Constitutionality of laws and regulations governing the agency.b. Evaluation of the personal managerial skills shown by the agency’s leaders.c. Correspondence of the agency’s performance with public opinion regarding the socialworth of its mission.d. Evaluations concerning the agency’s achievements of the goals set by the legislature forthe agency’s activities.
- Which of the following is an appropriate responsibility of the board? a) Reviewing the CAE-supplied internal audit function’s engagement work schedule. b) Recommending the assignment of speci c internal audit staff members for specific engagements. c) Reviewingtheengagementrecordsoftheexternalauditortodeterminetheircompetence. d) Performing a review of the procurement function of the organization.The internal audit risk assessment process: [SELECT ALL THAT APPLY] a) Provides the Internal Audit function with an ability to prioritize risk areas based on objective and subjective evaluation criteria. b) Should be considered the foundation of the audit function. c) Leads to the creation of the annual audit plan and audit budget. d) Should leverage management's enterprise risk management assessment process, if appropriate.The Government Accountability Office (GAO) describes expanded-scope governmentalauditing to include all of the following excepta. Financial statement audits.b. Attestation engagements.c. Compliance audits.d. Performance audits.
- Define the key terms below that relate to auditing of government and not-for-profit organizations in your own words. Be sure that you relate the terms to each other in your paragraph. Attestation engagement Generally Accepted Auditing Standards (GAAS) Opinion audits Materiality Financial auditWhat are the major differences between independent auditors’ reports on financial statementsand internal and governmental reports on efficiency, economy, and program results audits?Which of the following expressions best describes a situation under which the issuance of a report that concludes on the condition of the internal controls of an organization that provides technological services to one of our audit clients (SOC report) is required? It is that situation in which a CPA has been hired to evaluate a. the projected financial statements prepared by the client, to see if the expected results comply with hypothetical assumptions or not. b. the information systems and technologies subcontracted by the client, specifically in what corresponds to criteria of security, availability, integrity, confidentiality and privacy. c. any assertion or area that the client has asked to intervene (subject matter), and do so in accordance with compliance or not, with criteria or principles (against criteria). d. services that help the client maintain their financial independence.