Describe the role of the Government Accountability Office (GAO), the Department of Treasury, and the Office of the Management and the Budget (OMB) in the
Explanation of Solution
GAO (Government Accountability Office): This is an authorized body that governs, approves, administrates, and issues GAGAS.
Department of the Treasury: This is a part of the executive branch of the federal government which receives, keeps, distributes, and accounts for the monies of Country U.
Office of the Management and the Budget (OMB): This is the office which is part of the Executive Office of the President that produces the President’s budget, evaluates the Congressional requirements in conformity with the President’s policies and programs, and coordinates the inter-office policies.
Role of GAO, Department of Treasury, and OMB:
- GAO is the independent audit agency which is responsible for the audit of the federal government, prepare audit reports which indicate that the federal agencies are in conformity with the legal and GAAP (generally accepted accounting principles) requirements.
- The main function of Department of Treasury is to collect revenue and disburse cash. The department manages and is responsible for the accounts of the federal agencies.
- OMB prepares the financial budget for the federal government. OMB issues circulars on guidance to agencies about accounting and financial reporting. OMB approves the standard general ledger. OMB issues circulars on the appropriate use of the disbursed funds by sub recipients.
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Chapter 17 Solutions
Accounting For Governmental & Nonprofit Entities
- The organization primarily responsible for ensuring that public officials are using public funds efficiently, economically, and effectively is thea. Governmental Internal Audit Agency (GIAA).b. Central Internal Auditors (CIA).c. Securities and Exchange Commission (SEC).d. Government Accountability Office (GAO).arrow_forwardWhich of the following is true regarding the government-wide financial statements? a. The government-wide financial statements include the statement of net position and the statement of activities. b. The government-wide financial statements are to be prepared using the economic resources measurement focus and the accrual basis of accounting. c. The government-wide financial statements include information for governmental activities, business-type activities, the total primary government, and its component units. d. All of the above are true.arrow_forwardGENERAL PROVISIONS, BASIC STANDARDS AND POLICIES OF GOVERNMENT ACCOUNTING IMPORTANCE AS A WHOLE AND SUMMARYarrow_forward
- Draft a report from the finance director to the board: Describing the responsibilities of the treasury department State the advantages to the company of having such a separate treasury departmentarrow_forwardWhich of the following best identifies the purpose of the government-wide financial statements? Multiple Choice To provide an overview of how government would operate as a business-type entity. To provide detailed financial information on how the government’s financial performance compares to the prior reporting period. To provide an overview of the total government’s financial information. To To provide detailed financial information about different funds of government.arrow_forwardOn what do the government-wide financial statements report? Multiple Choice Operational accountability. Fiscal accountability. The cost of government services. Budgetary compliance.arrow_forward
- Which 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_forwardThe needs of users of government financial reports are the same as those of users of business entity financial reports. True or Falsearrow_forward1. What are the components that are included in the minimum requirements for general purpose external financial reporting?a. Introductory section, financial section, and statistical section.b. MD&A, government-wide financial statements, fund financial statements, notes to the financial statements, and RSI.c. Letter from the chief financial officer, government financial statements, notes to the financial statements, and RSI.d. MD&A, government-wide financial statements, notes to the financial statements, and RSI 2. Which of the following is not a required section of a federal agency or department’s performance and accountability report (PAR)?a. A performance section, which includes an annual performance report (APR).b. An MD&A.c. A basic financial statements section.d. A statement of nonparticipation in political matters. 3. The basic financial statements of a not-for-profit include all of the following excepta. Statement of financial position.b. Statement of activities.c.…arrow_forward
- The Federal Accounting Standards Advisory Board (FASAB) recommends accounting principles and standards for the federal government and its agencies and departments. True or Falsearrow_forwardObjectives of general purpose financial reporting is to provide information about. a. The Government b. The people c. Financial condition in the economy d. The reporting entityarrow_forwardHow the hierarchy of U.S. generally accepted accounting principles for state and local government accounting can be used to resolve financial reporting issues?arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College