The purpose of this is to avoid duplication of efforts in conducting governmental audits

Answer
AICPAs Professional Standards
GAOs Government Auditing
Standards
Single Audit Act
OMB Circular A-133
Which of the following is not a General Auditing Standard for financial audits?
Answer
professional
udgment
!nancial sta"ilit#
independence
competence

The Yellow Books general standards are issued b the
Answer
GAO
$ASB
AICPA
I%S
Which of the following is a Yellow Book standard in respect to independence?
Answer
auditors ma# onl# audit one government agenc#
during a !scal #ear
auditors s&ould not audit t&eir o'n 'or(
auditors ma# not advise in respect to computer
installation
auditors ma# not audit pu"lic corporations
Government Auditing Standards characteri!es government engagements into which of
the following three categories?
Answer
!nancial audits) compliance audits) and performance
audits
!nancial audits) operational audits) and performance
audits
!nancial audits) attest engagements) and performance
audits
!nancial audits) e*cienc# and e+ectiveness audits) and
compliance audits

This law re"uires that the wages of laborers and mechanics emploed b the
contractors of federall funded pro#ects be paid at prevailing local wage rates$
Answer
,avis-Bacon Act
Sar"anes-O-le# Act
$ederal .age and
/our 0a'
I%S Act
%ederal funds must be used onl for activities that are within the scope of the grant
would be a&n'
Answer
optional activit#
1elllo' Boo(
mandate
allo'a"le activit#
pro&i"ited activit#

(n discerning the ob#ectives of a program to be audited) the auditors should give the
least credibilit to
Answer
t&e legislation creating t&e program
t&e organi2ations program "udget
t&e organi2ations mission statement and strategic plan
comments "# t&e lo'er-level emplo#ees '&o actuall# depend on t&e
program for t&eir liveli&oods3

The process of specificall directing federal funds to a particular program is called*
Answer
allocation
earmar(in
g
identi!cat
ion
su"versio
n

Auditors who perform government audits must complete +, hours of continuing
professional
education ever two ears) of which ---- hours must be related directl to government
auditing$
Answer
4
5
3
6
1
7
8

Government Auditing Standards must be adhered to in all financial audits except of
Answer
state and local
governments
federal agencies
federall# c&artered
"an(s
pu"lic corporations

Which of the following is not reported upon in the Schedule of %indings and .uestioned
/osts?
Answer
reporta"le conditions related to internal control
material noncompliance 'it& provisions of la's) regulations) contracts)
or grant agreements
material e-amples of ine*cienc# and ine+ectiveness in carr#ing out
federall# funded programs
federall# reim"ursed e-penditures t&at are not ade9uatel# documented

(n reporting the results of a performance audit) it is appropriate for the auditors to
Answer
conecture as to t&e reasons for t&e programs failure to ac&ieve
desired results
include t&e auditors response to managements o"ections to t&e
auditors !ndings
provide recommendations as to &o' t&e program can "e
improved
all of t&e a"ove3

Which of the following statements is incorrect about GA0 standards pertaining to
performance audits?
Answer
:&e GAO mandates t&at programs "e audited annuall# "# accounting
trained professionals
Performance audits are normall# carried out "# internal audit
departments
Performance audits focus on speci!c programs
:&e GAO does not specif# '&en and &o' often a program) must "e
audited
11Generall accepted government auditing standards &GAGAS' refers to standards
incorporated in
Answer
t&e 1ello' Boo(
t&e 1ello' Boo( and OMB Circular A-133
t&e 1ello' Boo( and t&e AICPAs Professional Standards
t&e 1ello' Boo( OMB Circular A-133) and t&e AICPAs
Professional Standards