Auditing

Question 1

Government audits provide essential elements of public accountability and what?

Answer 1

Control

Question 2

Which standards generally apply to all Federal Government audits?

Answer 2

GAO Standards or GAGAS

Question 3

What is the Federal law that specifically required existing CFO agencies to have financial statements that successfully pass a financial audit?

Answer 3

The Government Management Reform Act of 1994

Question 4

What is the definition of a “successful financial audit?”

Answer 4

Achieving an unqualified audit opinion

Question 5

In which of the four waves of the FIAR process would a DoD entity expect to have an auditable Statement of Budgetary Resources, to include it’s Fund Balance with Treasury?

Answer 5

Wave 2

Question 6

Who conducts, supervises, monitors, and initiates audits and investigations relating to DoD programs and operations?

Answer 6

Department of Defense Inspector General (DoDIG)

Question 7

Which is the DoD document that provides policy for DoD audit and internal review offices to use for conducting audits of DoD operations, systems, programs, and functions?

Answer 7

DoDIG Audit Handbook

Question 8

Auditors auditing with personal impairments violate which general standard?

Answer 8

Independence

Question 9

How many hours of continuing professional education must an auditor complete every 2 years? What is the minimum of number hours that must be completed in any year of the 2-year period?

Answer 9

80 hours in 2 years; 20 hours minimum each year

Question 10

The auditor is restricted access to essential data necessary to satisfy the audit objective. What type of impairment would this be?

Answer 10

External Impairment

Question 11

Which type of audit is expected to determine whether:
• The financial information is presented in accordance with established or stated criteria.
• The entity has adhered to specific financial compliance requirements.
• The entity’s internal control structure over financial reporting and/or safeguarding of assets is suitably designed and implemented to achieve the control objectives?

Answer 11

The Financial Audit

Question 12

Which types of audits are expected to determine whether:
• The entity is acquiring, using, and protecting its resources economically and efficiently.
• The entity’s programs are achieving the desired results or benefits.
• The entity is accomplishing its mission in accordance with applicable laws, regulations, and public policies?

Answer 12

Performance Audit

Question 13

Which audit phase involves gathering evidence and determining materiality and significance of the findings?

Answer 13

Review Phase

Question 14

During which audit phase would you select the most important areas for audit coverage?

Answer 14

Planning Phase

Question 15

What document includes the objectives of the audit, the findings, and when appropriate, the recommendations?

Answer 15

The Audit Report

Question 16

What should be considered when evaluating the effectiveness of DoD audit organizations?

Answer 16

Audit Benefits

Question 17

Inspection of office security, separate and secure storage of records and equipment, and restricted system access are examples of what kind of controls?

Answer 17

Internal Controls

Question 18

If auditors are deterred from acting objectively and exercising professional skepticism by pressures, actual or perceived, from management of the entity being audited, what would this be called?

Answer 18

Threat to Auditor Independence