A5

Question 1

What does the consistency assertion address for MD&A?

Answer 1

whether nonfinancial data have been accurately derived (pulled from) related records

Question 2

What would be the date of a practitioner’s report on agreed-upon procedures?

Answer 2

the date of the completion of the agreed-upon procedures (NOT the date the final report is delivered to the client)

Question 3

T/F: The service auditor should read the other information included in a document containing management’s description of its system and the service auditor’s report to identify material inconsistencies or misstatements.

Answer 3

true

Question 4

What is the service auditor required to do?

Answer 4

-obtain a rep letter from management
-issue a report describing the scope and nature of the procedures performed
-inquire of management subsequent events that would have a significant effect on user organizations

Question 5

T/F: An auditor can only give negative assurance on a compliance report if they issued an unmodified or qualified opinion on the audited F/S.

Answer 5

true

Question 6

What does a financial statement audit include under GAGAS?

Answer 6

a statement in the auditor’s report that there are no findings or references a separate schedule of findings which includes disclosure of material instances of fraud and illegal acts

Question 7

T/F: Under GAS, audit documentation should contain sufficient information so that supplementary oral explanations are not required.

Answer 7

true

Question 8

What is the objective of an audit of F/S for a governmental entity?

Answer 8

the audit should be planned to obtain reasonable assurance about whether noncompliance could have a material effect on the entity’s programs

(NOT to provide an opinion on overall compliance with laws and regulations)

Question 9

What should be included in compliance audit workpapers?

Answer 9

1. risk assessment procedures performed including those related to gaining an understanding of the internal control over compliance
2. responses to the assessed risk of noncompliance including tests of compliance and tests of controls
3. materiality levels

*NOT an opinion on the effectiveness of internal control over compliance

Question 10

What should be included in the auditor’s report over compliance with laws and regulations for an F/S audit according to GAS?

Answer 10

1. material instances of fraud and illegal acts that were discovered
2. scope of the auditor’s testing of internal controls

Question 11

What are the basic things that GAGAS provides standards on?

Answer 11

1. direct reporting of illegal acts
2. reporting on internal controls

Question 12

What would the written rep letter include in connection with a governmental audit?

Answer 12

1. disclosure of all known noncompliance or statement that there was no such noncompliance
2. identification of management’s interpretation of compliance requirements that are subject to different interpretations

Question 13

What is the cognizant agency for a single audit?

Answer 13

the federal awarding agency that provides the most amount of direct funding to a nonfederal entity

Question 14

T/F: The auditor should only make reference to a specialist or service auditor if they’re modifying the opinion.

Answer 14

true - ask their permission first