The Veterans Administration agency rents to its employees government-owned housing at its field stations. GAO auditors examined the rentals being collected for about 15 per cent of the quarters and found that they were too low by nearly $600,000 a year. The standard of comparison in this case was the rental rates for comparable private housing in the same communities. The standard is prescribed by the fed- eral OMB. Recommendations for improving the situation were agreed to by agency officials.

Required: 

a. Why did GAO auditors conclude revenues were too low; was there a diversion of funds?

b. Compare the approach used by GAO auditors in examining revenue in this case to the approach that would be used by an independent CPA in auditing the agency's financial statements to express an opinion.