Question 18

Reports issued by CPAs conducting audits subject to the GAO standards must include all of the following except:

		A description of the scope of compliance testing.
		A description of the scope of internal control testing.
		A description of any irregularities and illegal acts found.
		A description of any sampling methodology and sampling plans used.

Question 19

A CPA prepares 'working papers' in an audit of an entity that receives federal financial assistance. Which of the following statements is true with regard to such 'working papers'?

		There is no specific standard requiring working papers.
		The AICPA has no specific standard requiring working papers, but the GAO standards require working papers.
		The AICPA and the GAO standards concerning working papers are the same.
		The GAO standards concerning working papers are more rigorous than the AICPA standards.

Question 20

Which of the following is an example of a financial audit?

An audit of financial statements to determine if they are presented fairly in accordance with generally accepted accounting principles.

An audit to determine whether the objectives of a new program are suitable and relevant and whether the entity has complied with laws and regulations that may have a material effect on the financial statements.

An audit of the financial report on the Noxious Weed Special Revenue Fund to determine whether the entity has complied with specific finance-related requirements.

An audit to determine whether an entity is acquiring its resources economically and efficiently.

Which of the following federal government accounting terms is most similar to an encumbrance, as that term is used in state and local government accounting?

		Apportionment.
		Allotment.
		Commitment.
		Obligation.