A governmental auditor assigned to audit the financial statements of the state highway department would not be considered independent if the auditor: Multiple Choice performed audits of the state budget that included funding to the highway department. lived in the state and utilized the highway system on a daily basis. spouse was the CFO of the highway department. reported the audit findings to the transportation committee of the state legislature.

An auditor issues a report dated 2/12/Year 2 on financial statements for the year ended 12/31/Year 1. Which best describes the auditor's responsibility for an event occurring on 2/1/Year 2 and an event occurring on 3/1/Year 27 A. The auditor has an active responsibility to investigate both events. B. The auditor has an active responsibility to investigate the 2/1/Year 2 event, but no responsibility concerning the 3/1/Year 2 event. C. The auditor has an active responsibility to investigate the 2/1/Year 2 event, and must also consider the effect of the 3/1/Year 2 event if it comes to his/her attention. D. The auditor has no responsibility for either event, since both occur after the date of the financial statements.

Anna Santos audited the information system of Flores Corporation. Upon her evidence collection, she wanted to verify if the management assumes full responsibility for formulating, developing, documenting, promulgating, and controlling policies covering general aims and directives

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.

classify information (1-5) according to its nature (e.g., physical, oral, documentary or evidence generated by the auditor)

Ward is auditing an entity’s compliance with requirements governing a major federalfinancial assistance program in accordance with the Single Audit Act. Ward detectednoncompliance with requirements that have a material effect on the program. Ward’sreport on compliance should express(1) no assurance on the compliance tests.(2) reasonable assurance on the compliance tests.(3) a qualified or adverse opinion.(4) an adverse opinion or a disclaimer of opinion

The evidence considered most appropriate by auditors is best described asa. Internal documents such as sales invoice copies produced under conditions of stronginternal control.b. Written representations made by the president of the entity.c. Documentary evidence obtained directly from independent external sources.d. Direct personal knowledge obtained through physical observation and mathematicalrecalculation

An independent CPA is engaged to audit the financial statements of Holland City . The city has a variety of revenue sources including a $350,000 grant from the U.S. Department of Housing and Urban Development. Which of the following audit standards must the CPA use when conducting the audit?   The AICPA audit standards.   The GAO audit standards.   The OMB audit standards.   All of the standards listed in the choices.

Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) program audits. The work can be done by independent (external) auditors, internal auditors, or governmental auditors (including IRS auditors and federal bank examiners). Following is a list of the purpose or products of various audit engagements. a. Analyze proprietary schools' spending to train students for oversupplied occupations. b. Determine the fair presentation in conformity with GAAP of an advertising agency's financial statements. c. Study the Department of Defense's expendable launch vehicle program. d. Determine costs of municipal garbage pickup services compared to comparable service subcontracted to a private business. e. Audit tax shelter partnership financing terms. 1. Study a private aircraft manufacturer's test pilot performance in reporting on the results of test flights. g. Periodically have U.S. comptroller of currency examine a national…

What are the major differences between independent auditors’ reports on financial statementsand internal and governmental reports on efficiency, economy, and program results audits?