1) The major external users of governmental financial reports include:

a. Stockholders

b. Taxpayers

c. Bond-rating agencies

d. Both Taxpayers and Stockholders

e. Both Taxpayers and Bond-rating agencies

2) Which of the following terms relates to audit firms having too many audits to complete in a short period of time?

a. Budget constraints

b. Workload compression

c. Demand for audit services

d. Supply of audit firms

3) Which of the following is a commonly used term for Generally Accepted Government Auditing Standards (GAGAS)?

a. Uniform Guidance Audit

b. Single Audit

c. Yellow Book

d. Green Book

4) Which of the following types of audits is designed to provide information to the client to assist in reducing costs, increasing efficiency, improving operations, and/or increasing effectiveness?

a. Compliance audit

b. Performance audit

c. Agreed-upon procedures

d. Consulting

5) A Uniform Guidance audit is required in which of the following circumstances?

a. When an entity receives more than $750,000 of federal grant awards

b. When an entity expends more than $750,000 of federal grant awards

c. When an entity receives more than $500,000 of federal grant awards

d. When an entity expends more than $500,000 of federal grant awards

6) In Daniel Kahnemans rational decision-making model, how are System 1 and System 2 thinking differentiated?

a. System 1 thinking is instinctive and quick, while System 2 thinking is deliberate and more accurate.

b. There are no differences between System 1 and System 2 thinking.

c. System 1 thinking is used by professional accountants, and System 2 thinking is used by paraprofessional staff.

d. System 1 and System 2 refer to different regions of the brain responsible for decision-making.