GAO Independence Standards. Indicate which of the following activities performed by an auditor for a governmental client are
(a) Allowable,
(b) Permitted if safeguards are in place, or
(c) Prohibited.
1. Serving as an adviser on the building subcommittee for the county.
2. Preparing a $4,000,000 indirect cost proposal.
3. Providing all payroll services for the client.
4. Converting the financial records from the cash basis to GAAP basis.
5. Providing advice on setting tip the chart of accounts in a commercially purchased software package.
6. Maintaining the depreciation schedules for which management has determined the useful lives and residual values.
7. Providing appraisals and valuation of property held by the government.
8. Assessing program outcomes for three government programs.
9. Providing internal audit services.
10. Preparing draft financial statements from the client’s adjusted trial balance.