1. Which of the following statements regarding audit findings is true?

	A significant deficiency is a deficiency in internal control such that there is a reasonable possibility that a material misstatement of the entitys financial statements will not be prevented, or detected and corrected on a timely basis.
	A material weakness is a deficiency in internal control important enough to merit attention by those charged with governance.
	A deficiency exists when the design or operation of a control does not allow management or employees to prevent, or detect and correct misstatements on a timely basis.
	All of the above are true.

2. Guidelines for grant accounting and reporting is contained within Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, issued by the AICPA.

	True
	False

3. The U.S. Office of Management and Budget issues generally accepted auditing standards which provide general guidelines for governmental audits and address the minimum responsibilities of the auditor.

True

False

4.Under generally accepted government auditing standards, safeguards are controls designed to reduce or eliminate threats to independence.

	True
	False