Which of the following bodies is responsible for establishing standards for audits of entities receiving federal financial assistance? (a) Financial Accounting Standards Board (FASB). (b) Govermmental Accounting Standards Board (GASB). (c) American Institute of Certified Public Accountants (AICPA) (d) General Accounting Office (GAO) 16, Operational auditing is primarily concemed with determining if: (a) 17. Financial statements are in compliance with GAAP and are fairly stated. (b) (c) (d) Internal controls are operating as designed. Designated operational units are operating effectively and efficiently. Operational units are in compliance with applicable laws. Which of the following is not one of the attestation standards? (a) 18. The work shall be adequately planned and assistants, if any, shall be properly supervised. (b) A sufficient understanding of internal control shall be obtained to plan the engagement. Sufficient evidence shall be obtained to provide a reasonable basis for the conclusion that is expressed in the report. The report shall identify the assertion being reported upon and state the character of the engagement. (c) (d) 19. Which of the following types ofaudits uses laws and regulations as its criteria for evaluating the auditee? (a) Operational audit. (b) Financial statement audit. (c) Performance audit. (d) Compliance audit. Performing an audit has its limitations. Which of the following statements is not a true limitation of auditing? (a) Many financial statement assertions cannot be audited. (b) Audit conclusions are generally arrived at on the basis of examining 20. only a sample of the evidence available. Some evidence supporting monetary amounts contained in the financial statements may only be obtained by oral or written representations made by management. The auditor may not obtain relevant evidence due to fatigue or carelessness when performing an audit. (c) (d) 5