Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 26, Problem 16.1MCQ
To determine
Identify the common element in the audit of federal financial assistance recipients.
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Students have asked these similar questions
Although 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.
Which of the following engagements is most likely to be considered an operational audit?
The auditor determines whether the organization is following provisions of laws and regulations.
The auditor examines information presented in an entity’s financial statements to determine whether the financial statements are presented fairly in accordance with the applicable financial reporting framework.
The auditor evaluates the organization’s efficiency in processing payments.
The auditor assists the client in preparation of financial statements.
Which of the following is not true about the major differences in the scope of audit
responsibilities for CPAS, GAO auditors, IRS agents, and internal auditors?
CPAS perform audits of financial statements of private and public companies
(A)
prepared in accordance with U.S. or international auditing standards.
GAO auditors perform compliance or operational audits in order to assure the
B government of the expenditure of public funds in accordance with its directives and
the law.
IRS agents perform compliance audits to enforce the federal tax laws as defined by
the government, interpreted by the courts, and regulated by the IRS.
Internal auditors perform compliance or operational audits in order to assure
management or the board of directors that controls and policies are properly and
consistently developed, applied, and evaluated.
Chapter 26 Solutions
Auditing And Assurance Services
Ch. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQ
Ch. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 14RQCh. 26 - Prob. 15.1MCQCh. 26 - Prob. 15.2MCQCh. 26 - Prob. 15.3MCQCh. 26 - Prob. 16.1MCQCh. 26 - Prob. 16.2MCQCh. 26 - Prob. 16.3MCQCh. 26 - Prob. 17.1MCQCh. 26 - Prob. 17.2MCQCh. 26 - Prob. 17.3MCQCh. 26 - Prob. 18.1MCQCh. 26 - Prob. 18.2MCQCh. 26 - Prob. 18.3MCQCh. 26 - Prob. 19DQPCh. 26 - Prob. 20DQPCh. 26 - Prob. 21DQPCh. 26 - Prob. 22DQPCh. 26 - Prob. 23DQPCh. 26 - Prob. 24DQP
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Similar questions
- Auditors performing audits under the Single Audit Act issue an opinion on whether the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the F/S taken as a whole. One reason auditors can issue this opinion is that the data used to prepare the Schedule is derived from the underlying accounting records audited. True or falsearrow_forward23. Which of the following types of audits is designed to determine that an organization has complied with the specific requirements of major financial assistance programs? Group of answer choices An audit in accordance with Government Auditing Standards. A single audit. An audit in accordance with generally accepted auditing standards. An operational audit.arrow_forwardCompare and contrast the objectives of financial, compliance, operational audit and government audit. Include in your answer who performs each type of audit.arrow_forward
- What are the major differences in the scope of the audit responsibilities for CPAs, GAO auditors, IRS agents, and internal auditors?arrow_forwardWhat are the major types of audits and audit engagements described in the Government Accountability Office's Government Auditing Standards or generally accepted government auditing standards (GAGAS), and how do they differ?arrow_forwardExplain the auditor’s responsibility to consider compliance with laws and regulations. How does this responsibility differ for laws and regulations that have a direct effect on the financial statements compared to other laws and regulations that do not have a direct effect?arrow_forward
- How does Federal Law impact the scope, methodologies, and reporting requirements for integrated, performance, and other audits conducted within the public sector, and what are the key challenges auditors face in ensuring compliance with legal mandates while maintaining audit quality and transparencyarrow_forward13. When auditing an entity's financial statements in accordance with Government Auditing Standards (the "Yellow Book"), an auditor is required to report on: I. Recommendations for actions to improve operations. II. The scope of the auditor's tests of compliance with laws and regulations. Group of answer choices I only. II only. Both I and II. Neither I nor II.arrow_forwardWhich of the following combinations of standards and types of audits are most closelyrelated to the activities of the Public Company Accounting Oversight Board?a. Develop Auditing Standards for the audits of nonpublic entities.b. Develop Auditing Standards for the audits of public entities.c. Develop Statements on Auditing Standards for the audits of nonpublic entities.d. Develop Statements on Auditing Standards for the audits of public entities.arrow_forward
- Which of the following is usually not part of an internal audit department’s audit charter?a. A commitment from management to ensure the independence of the internal auditdepartment.b. A definition of the scope of the audit department’s activities.c. The organizational structure of the internal audit department.d. The reporting requirements of the internal audit department.arrow_forwardUnder preconditions of an audit, the management shall provide the auditor with the following, except: Group of answer choices b. Additional information that the auditor may request from management for the purpose of the audit d. All the above are concerns that management need to provide c. Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence. a. Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;arrow_forwardwhat is the purpose of the Generally Accepted Government Auditing Standardsarrow_forward
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