CGFO Auditing Standards 2

Question 1

Which GAGAS standard requires auditors to maintain independence in both fact and appearance?

Accepted Answer

General standard

Answer

GAGAS general standards require auditors to be independent in fact and appearance throughout the audit.

Question 2

Under Yellow Book standards, a financial audit of a government entity must be performed in accordance with:

Accepted Answer

GAGAS and GAAS

Answer

Government financial audits must comply with both GAGAS (Yellow Book) and GAAS (AU-C sections), as GAGAS builds upon GAAS.

Question 3

A performance audit finding must contain which four elements according to GAGAS?

Accepted Answer

Condition, criteria, cause, effect

Answer

GAGAS requires performance audit findings to include condition, criteria, cause, and effect to give a complete picture.

Question 4

What is the primary purpose of an attestation engagement under GAGAS?

Accepted Answer

To report on a subject matter or assertion made by another party

Answer

Attestation engagements involve reporting on subject matter or an assertion about that subject matter that is the responsibility of another party.

Question 5

Under GAGAS, which type of audit opinion indicates that financial statements are presented fairly in all material respects?

Accepted Answer

Unmodified opinion

Answer

An unmodified (clean) opinion means the financial statements conform to GAAP and are free of material misstatement.

(CGFO) Certified Government Finance Officer Practice Test