Government Auditing Flashcards
What are the sources of Government Auditing Standards?
GAAS & GAGAS are the sources of standards for governmental audits.
What are the sources of Government audits of Federal assistance?
Title 2 of the Code of Federal Regulations, 200.500-521 (containing single audit requirements)
What are the types of Government Audits?
- Financial Audits
- Attestation Engagements
- Performance Audits
What is the purpose of a FS audit?
To determine whether the financial statements present fairly the financial position, result of operations, and cash flows in accordance with GAAP.
What do Attestation engagements performed in conformity with Government Auditing Standards incorporate?
The AICPA’s standards for examinations, reviews, and agreed upon procedures by reference and include expanded requirements.
What are some examples of attestation engagements?
Compliance with specified laws, rules, contracts, or grants.
Effectiveness of IC over compliance with specified requirements.
What is required by the provisions of federal regulations in 2 CFR 200.521, which governs the Single Audit Act?
It requires that entities that expend total federal assistance equal to or in excess of $750,000 in a fiscal year to have an audit performed in accordance with the act.
What does the 2 CFR Single Audit expand the auditor’s responsibilities to include?
Procedures designed to test and report on compliance matters having a direct and material effect on major federal award programs.
What does presumptively mandatory mean?
Presumptively mandatory indicates that the requirement must be followed in all cases where the requirement is relevant, except in rare circumstances in which the auditors determine it is necessary to depart from the presumptively mandatory requirement.
What should be included in the auditor’s report on internal controls and compliance with laws and regulations in accordance with Government Auditing Standards?
The scope of the auditor’s testing of internal controls in required to be included
To whom does Government Auditing Standards published by the Government Accountability Office primarily apply to?
GAGAS primarily apply to audits of federal financial assistance and government organizations but have been adopted by some states for audits of state financial assistance and other governmental funding.
2 CFR 200 single audit allows auditors to use what approach to determine major grants?
A risk-based approach
As a quality control requirement under GAS, audit organizations seeking to enter into a contract to perform an audit in accordance with government auditing standards should provide what?
Audit organization should provide their most recent external quality control review report to the party contracting for the audit.
How often is an external peer review required under GAGAS?
Every 3 years
When reporting under GAS, the auditor should consider whether any noted deficiencies in such Internal Controls should be to whom?
Specific legislative and regulatory bodies
