You are an audit accountant and you boss asks you the following questions

answer For financial audits, generally accepted government auditing standards (GAGAS) incorporate AICPA standards. GAGAS prescribe additional requirements for reporting on Laws, Regulations, Reporting on Contracts, and Grants Internal Control

Yes No

No No

No Yes

Yes Yes

When reporting on an entitys internal control over financial reporting in compliance with generally accepted government auditing standards, an auditor should issue a written report that includes a

Statement of positive assurance that the results of tests indicate that internal control either can, or cannot, be relied on to reduce control risk to an acceptable level.

Statement of negative assurance that nothing came to the auditors attention that caused the auditor to believe significant deficiencies were present.

Description of the scope of the auditors testing of internal control.

Description of the material weaknesses and the strengths that the auditor can rely on in reducing the extent of substantive testing.

Reporting standards for financial audits under Government Auditing Standards differ from reporting standards under generally accepted auditing standards in that Government Auditing Standards require the auditor to

Present the results of the auditors tests of economy and efficiency regarding the use of the entitys resources.

Describe the scope of the auditors tests of compliance with laws and regulations.

Provide negative assurance that the auditor discovered no transactions that were indicative of illegal acts.

Provide positive assurance that the entitys audit committee is adequately informed about the effects of any illegal acts.

An auditor determines that a client who received a federal grant fraudulently reported information to the federal government. The clients management refuses to acknowledge the fraud. Which of the following parties should the auditor contact first?

The recipients of the clients services.

The state attorney generals office.

The agency that provided the grant.

The state accountancy board.