1.) A The GAO standards of reporting for governmental financial audits incorporate the AICPA standards and prescribe additional requirements to satisfy the unique needs of governmental audits. Which of the following is a reporting requirement for governmental financial audits?

Material indications of noncompliance with laws and regulations should be reported in a document with distribution restricted to senior officials of the entity audited.

A written report providing positive assurance on compliance with laws and regulations should be prepared.

A written report providing negative assurance on compliance with laws and regulations should be prepared.

Auditors should externally report significant deficiencies and material weaknesses in internal control.

B.) In a financial audit under Government Auditing Standards, procedures have disclosed material instances of noncompliance with regulations. The report should

Also disclose immaterial instances of noncompliance.

Place the findings in proper perspective.

Indicate that the audit was designed to provide reasonable assurance that noncompliance that could result in criminal prosecution would be detected.

Express a qualified opinion.

C.) Which of the following statements is a standard applicable to financial statement audits in accordance with Government Auditing Standards (the Yellow Book)?

An auditor should determine the extent to which the entitys programs achieve the desired results.

An auditor should assess whether the entity has reportable measures of economy and efficiency that are valid and reliable.

An auditor should report on the scope of the auditors testing of compliance with laws and regulations.

An auditor should report recommendations for actions to correct problems and improve operations.

C.) Which of the following is a documentation requirement that an auditor should follow in a financial audit in accordance with Government Auditing Standards?

The audit documentation should contain a caveat that all instances of material errors and fraud may not be identified.

The audit documentation should contain copies of documents examined.

The auditor should document the supervisory review of the evidence that supports the findings, conclusions, and recommendations contained in the auditors report.

The auditor should document all deficiencies in internal control discovered during the audit.