$7)$ Which of the following statements concerning the Single Audit Act of $1984($with $1996$ amendments$)$ is correct?

A$)$ Only those entities receiving over $$750,000$ a year in federal financial assistance are required to have a single audit.

B$)$ Those entities expending under $$750,000$ a year in federal awards may be exempt from single audit requirements.

C$)$ The Single Audit Act only applies if an entity has high risk programs.

D$)$ The single audit is optional for all entities receiving federal awards.

$8)$ Typical objectives of a performance audit include:

A$)$ Determining whether financial statements fairly present the entity's operational results.

B$)$ Judging the appropriateness of an entity's program goals.

C$)$ Determining whether financial statements fairly present in conformity with GAAP.

D$)$ Assessing effectiveness, economy, efficiency, and internal controls.

$9)$ Generally accepted government auditing standards $($GAGAS$)$:

A$)$ Establish the same scope as GAAS, but use wording appropriate to government entities instead of business organizations.

B$)$ Are set forth in the Federal Government Compliance Supplement.

C$)$ Establish more standards that are broader in scope than those found in GAAS.

D$)$ Establish standard wording of auditor's reports on government financial statements.

$10)$ An unmodified audit opinion rendered on a government unit's basic financial statements means those statements:

A$)$ Have been certified as free from error.

B$)$ Did not require modifications by the auditor.

C$)$ Present the entity's financial position fairly in conformity with GAAP.

D$)$ All of these choices are correct.

$11)$ An auditor would not render an opinion on a$($an$)$:

A$)$ Financial audit of financial statements.

B$)$ Performance audit.

C$)$ Audit to determine whether the entity has adhered to specific compliance requirements applicable to a major program.

D$)$ Audit to determine whether a government department's financial information complies with specific state regulatory requirements.

$12)$ Which of the following is not a required component of the audit report for a single audit?

A$)$ A report on internal control over financial reporting and compliance with federal statutes, regulations, and the terms and conditions of the federal award.

B$)$ An opinion on the completeness of the schedule of expenditures.

C$)$ A report on compliance for each major program and on internal control over compliance.

D$)$ A schedule of findings and questioned costs.

$13)$ Which of the following would not be considered Category $($b$)$ GAAP for state and local government auditees?

A$)$ AICPA Practice Bulletins if specifically made applicable to state and local governments by the AICPA and cleared by the GASB.

B$)$ GASB Technical Bulletins.

C$)$ GASB Statements.

D$)$ GASB Implementation Guides.

$14)$ Which of the following is the highest in the hierarchy of generally accepted accounting principles for federal entities?

A$)$ AICPA Audit and Accounting Guide for Not$-$for$-$Profit Entities.

B$)$ FASB Codification.

C$)$ FASB statements.

D$)$ FASAB standards and interpretations.