CGFO Auditing Standards 5

Question 1

A government auditor is performing a compliance audit under the Single Audit. Which document provides the compliance requirements for federal programs?

Accepted Answer

OMB's Compliance Supplement

Answer

OMB's Compliance Supplement identifies applicable compliance requirements and suggested audit procedures for major federal programs.

Question 2

Under GAGAS, which of the following is considered a 'nonaudit service' that could impair independence?

Accepted Answer

Preparing the financial statements subject to the audit

Answer

Preparing financial statements that the auditor will then audit creates a self-review threat and is a management responsibility that impairs independence under GAGAS.

Question 3

What is 'audit risk' in the context of government financial audits?

Accepted Answer

The risk that the auditor expresses an incorrect opinion on material misstatement

Answer

Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.

Question 4

Under the Single Audit Act, which entity oversees the Federal Audit Clearinghouse?

Accepted Answer

Office of Management and Budget (OMB)

Answer

OMB oversees the Federal Audit Clearinghouse, which collects and distributes Single Audit reporting packages for federal oversight agencies.

Question 5

Which of the following best characterizes a 'repeat finding' in a government audit?

Accepted Answer

A finding that also appeared in a prior-year audit and was not fully corrected

Answer

A repeat finding is one that was reported in a prior audit period and has not been adequately corrected, indicating persistent control or compliance weaknesses.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Auditing Standards 5