CGAP Public Sector Compliance and Regulations 3

Question 1

Which principle requires government auditors to be free from personal, external, and organizational impairments to independence?

Accepted Answer

Independence in fact and appearance

Answer

Due professional care

Answer

Objectivity and impartiality

Answer

Professional skepticism

Question 2

Under GAGAS, what is required when an auditor identifies a violation of provisions of contracts or grant agreements?

Accepted Answer

Report the violation in the audit report unless clearly inconsequential

Answer

Immediately notify law enforcement

Answer

Withdraw from the engagement

Answer

Notify the awarding federal agency directly before completing fieldwork

Question 3

What is a 'finding' in a government performance audit report?

Accepted Answer

A structured presentation of criteria, condition, cause, and effect identifying a deficiency or noteworthy achievement

Answer

Any observation the auditor makes about program operations

Answer

A summary of recommendations for management action

Answer

A disclosure of auditor qualifications

Question 4

Which act established the framework for congressional oversight of federal programs through regular reporting of performance results?

Accepted Answer

Government Performance and Results Act (GPRA) of 1993

Answer

Chief Financial Officers Act

Answer

Federal Financial Management Improvement Act

Answer

Budget and Accounting Act of 1921

Question 5

What does 'materiality' mean in the context of a government financial statement audit?

Accepted Answer

The magnitude of a misstatement or omission that could influence decisions of users of the financial statements

Answer

The importance of a finding to legislative decision-makers

Answer

Any dollar amount above the entity's threshold for capitalizing assets

Answer

The total value of federal grants subject to single audit

Question 6

Under the Federal Managers' Financial Integrity Act (FMFIA), what are agency heads required to do annually?

Accepted Answer

Provide a statement of assurance on the effectiveness of internal controls and financial systems

Answer

Submit to a GAO audit of all agency programs

Answer

File a report with Congress listing all identified fraud cases

Answer

Certify that no Antideficiency Act violations occurred