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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Question
Chapter 1, Problem 9Q
a.
To determine
Describe the purpose of the GASB’s GAAP hierarchy guidelines.
b.
To determine
Explain how an accountant or auditor would use the hierarchy, if the guidance given in a GASB statement and an AICPA audit and accounting guide regarding the proper accounting treatment of a state government transaction or event conflict.
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C) In audits of state and local government units which of the following sections are not required in the auditor's report for a GAAS audit?
Group of answer choices
1: Responsibilities of Management for the Financial Statements.
2: Auditor’s Responsibilities for the Audit of the Financial Statements.
3: Report on Waste and Abuse.
4: Basis for Opinion.
1. Explain the purpose of operational accountability and the purpose of fiscal accountability. Which category of financial statements is most useful in reporting on each of these accountability concepts?
2. Under GASB guidance, when should an item be recognized on the face of the financial statements? Under what conditions would the GASB indicate that a note disclosure should accompany an item that has been recognized on the financial statements?
In what ways does the practice of internal auditing differ from the practice of public accounting? To whom is the internal auditing function responsible?
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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Similar 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.arrow_forwardDo the auditors have to report on (a) the audited financial statements and (b) any other information that is required by law?arrow_forwardDo auditors have an obligation to report on (a) audited financial statements and (b) any additional information required by law?arrow_forward
- For entities reporting financial statements on the basis of IFRS, what sources of guidance should such entities consider with regard to the selection and application of accounting policies? Be sure to cite specific authoritative literature to justify your answer. Don'tarrow_forwardwhy would an auditor ensure that all revenue-related disclosures are made in the financial statementsarrow_forwardAlthough the scope of audits of recipients of federal financial assistance in accordancewith federal audit regulations varies, these audits generally have which of the followingelements in common?(1) The auditor is to determine whether the financial assistance has been administered in accordance with applicable laws and regulations.(2) The materiality levels are lower and are determined by the governmental entitiesthat provided the federal financial assistance to the recipient.(3) The auditor should obtain written management representations that the recipient’sinternal auditors will report their findings objectively and without fear of politicalrepercussions.(4) The auditor is required to express both positive and negative assurance that illegalacts that could have a material effect on the recipient’s financial statements aredisclosed to the inspector general.arrow_forward
- 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 principlesarrow_forwardWhich is not a purpose of the IASB’s Conceptual Framework? -To assist auditors in forming an opinion as to whether financial statements conform to generally accepted accounting principles (GAAP). -D. To assist all parties to understand and interpret standards. To assist the IASB to develop IFRS standards that is based on consistent concepts. -To assist preparers to develop consistent accounting policies when no -----Standard applies to a particular transaction or other event, or when a standard allows a choice of accounting policy. Accounts Receivable when classified as trade will always be a? -Long Term Asset -Current Asset -Historical Asset -Non-Current Asset Which of the following statements describing a corporation is not true? -Shareholders own the business and manage its day-today affairs. -A corporation is subject to a greater governmental regulation than a single proprietorship or partnership. -Shareholders…arrow_forwardWhat options are available to the auditor for presenting reports on the entity’s financial statements and internal control over financial reporting?arrow_forward
- How does an audit of financial statements pertain to agency theory?arrow_forwardWhich of the following topics is not addressed in the auditors’ report for a public entity?a. Responsibilities of the auditor and management in the financial reporting process.b. Absolute assurance regarding the fairness of the entity’s financial statements in accordance with GAAP.c. A description of an audit engagement.d. A summary of the auditors’ opinion on the effectiveness of the entity’s internal controlover financial reporting.arrow_forwardWhich non-audit service may be provided to an SEC audit client? A- )Preparing the annual tax returns for review and approval by the client. B- )Designing the future state operating model for its finance and accounting functions. C- )Performing a valuation to support the client’s legal claim. D- )Developing, managing and executing portions of its internal audit plan.arrow_forward
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