Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Chapter 1, Problem 2P
To determine
Rank the sources of guidance according to the Generally Accepted Accounting Principles (GAAP) hierarchy in each of the given issue.
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Obtain a copy of The State of New Jersey's recent Comprehensive Annual Financial Report (CAFR). This may commonly be obtained online. It would be best, but not absolutely necessary, to use a CAFR that has a Certificate of Excellence in Financial Reporting from the Government Finance Officers Association. Answer the following questions related to your CAFR.
(A) What are the inclusive dates of the fiscal year?
(B) Identify the name and address of the independent auditor. Is the auditor's opinion unmodified? If not, describe the modification. Is the opinion limited to the basic financial statements, or does the opinion include combining and individual fund statements?
(C) Does the report contain an organization chart? A table of contents? A list of principal officials? A letter of transmittal? Is the letter of transmittal dated and signed by the chief financial officer? List the major items of discussion in the letter of transmittal.
(D) Does the report include a Management's Discussion…
Which of the following groups sets standards for audits of federal financial assistance recipients? a. U.S. General Accounting Office b. U.S. Office of Management and Budget c. Governmental Accounting Standards Board d. Financial Accounting Standards Board
Answer the following multiple-choice questions.
GAAP stands for:(a) governmental auditing and accounting practices.(b) generally accepted attest principles.(c) government audit and attest policies.(d) generally accepted accounting principles
Chapter 1 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 1 - Discuss (a) the similarities in accounting for...Ch. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Contrast the terms expense and expenditure.Ch. 1 - It was noted in this chapter that most of the...Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - Prob. 1.3ECh. 1 - In which of the following situations would the...Ch. 1 - Legally adopted budgets of governmental funds are...Ch. 1 - Which of the following statements is false? A fund...Ch. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - (Expenditures vs. Expenses) Family Services, a...Ch. 1 - (Statement of Revenues and ExpendituresWorksheet)...Ch. 1 - Prob. 2P
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- Which of the following has the least amount of official authority for the financial reporting of state and local governments? Choose the correct.a. GASB Technical Bulletins.b. GASB Statements of Governmental Accounting Standards.c. GASB Concepts Statements.d. GASB Implementation Guides.arrow_forwardCompilation and Review Procedures. The following numbered items 1–10 state procedures accountants should consider in review engagements and compilation engagements on the annual financial statements of nonissuers (performed in accordance with AICPA Statements on Standards for Accounting and Review Services).Required:For each item (taken separately), tell whether the item is required in all review engagements and/or required in all compilation engagements. For each item, give two responses, one regarding review engagements and the other regarding compilation engagements.1. The accountants should establish an understanding in writing with the entity’s management regarding the nature and limitations of the services to be performed.2. The accountants should make inquiries concerning actions taken at the board of directors’ meetings.3. The accountants, as the entity’s successor accountants, should communicate with the predecessor accountants to obtain access to the predecessors’ audit…arrow_forwardPlease help with the following: Review FASB Statement of Financial Accounting Concept No. 1, No. 4, and No. 8, as well as GASB Statement No. 1. Compare the financial reporting needs of the users of governmental, nonprofit, and for-profit entities. Identify a local government, nonprofit, and for-profit business in your community, and describe the resource providers/users for each type of organization. Explain the need for information for each resource provider/user group. Discuss how the objectives of the financial reporting listed for each type of organization meet these needs.arrow_forward
- Which of the following would typically not be included in the introductory section of a comprehensive annual financial report? Multiple Choice Title and contents page. Letter of transmittal. A description of the government. Summary of the government's current financial position and results of financial activities.arrow_forwardWhich of the following is true regarding the organization of the comprehensive annual financial report?a. The three major sections are introductory, financial, and statistical.b. The management’s discussion and analysis is considered to be part of the introductory section.c. The auditor’s report is considered to be part of the statistical section.d. Basic financial statements include the government-wide statements, the budgetary statement, and the notes to the financial statements.arrow_forwardDefine 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 auditarrow_forward
- a. Discuss in detail about accounting standards. 1. History of Accounting standards (IFRS and GAAP) 2. Boards or organization associated IFRS. Structure of the board. 3. Process of developing IFRS or amending for existing IFRS. 4. Detailed discussion of any Two updated IFRS. b. Discuss about Regulatory authority for monitoring accounting standards and Financial Reporting in Oman and other GCC countries. c. Write a summary of IFRS 7, and 13 and show sample illustrations for measurement and de-recognition of financial assets and financial liabilities.arrow_forwardGovernment Accounting-you will do a 5 page power point slide presentation and use the GASB codification as your guidance. Please include the following: Explain what the CAFR is Provide an outline for the minimum content of a CAFR Select a local CAFR (I can help you with this step) and identify the following: a. the entity’s most significant source of revenues and most significant expense; b. the entity’s most significant asset, and its most significant liability; c. two of the individual funds used by the government d. who prepared the report; e. who audited the report, and using what auditing standards.arrow_forwardThe Summary of Significant Accounting Policies : not required in the CAFR Describes the methods used in the financial accounting system . a summary of the financial results of the operations of the governmental unit . usally the last note found in the CAFR .arrow_forward
- The primary authoritative body for determining the measurement focus and basis of accounting standards for governmental fund operating statements is thea. Governmental Accounting Standards Board (GASB).b. National Council on Governmental Accounting (NCGA).c. Government Accounting and Auditing Committee of the AICPA (GAAC).d. Financial Accounting Standards Board (FASB).arrow_forwardRead the following journal article: "25 Years of State and Local Governmental Financial Reporting—An Accounting Standards Perspective," The Government Accountants Journal, Fall 1992. Or, as an alternative possibility, do a search of books in the college library for advanced accounting textbooks or government accounting textbooks that were published prior to 2000. Required Accounting for state and local governments has changed considerably in the last 10-20 years. Write a report to highlight some of the differences you noted between the process described before 2000 and the process that has been presented in this chapter and the preceding one in this textbook.arrow_forwardAn 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.arrow_forward
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