Integrated Audits, Attestation Engagements, Compliance, and Government Audits

Question 1

Agreed upon procedures report should contain?

Answer 1

a list of the procedures performed (or reference) and the related findings, “limitations on the projection’s usefulness”, statement referring to standards established by AICPA & a statement of restrictions on the use of the report

Question 2

Do AUP provide assurance?

Answer 2

NO. none. Only needs to be independent

Question 3

Difference between financial forecast & financial projection/prospective

Answer 3

Projection requires a paragraph restricting the use and distribution of the report, forecast is acceptable for general use (no extra paragraph needed)

Question 4

Do Compilations provide assurance

Answer 4

not intended to provide assurance or say they present “reasonably”, do not need to be independent

Question 5

Do reviews provide assurance

Answer 5

yes, limited assurance

Question 6

Type 1 report

Answer 6

only includes managements description of the service organization’s system

Question 7

type 2 report

Answer 7

includes managements description of the service organization’s system AND that it works in the control environment

Question 8

most efficient way to obtain information on internal controls?

Answer 8

rely on the department audit report on internal controls placed in operation and their operating effectiveness

Question 9

2 CFR 200

Answer 9

expands auditors responsibilities to include procedures regarding major federal award programs

Question 10

what is required in governmental audits in the auditors report

Answer 10

auditor should obtain written representation that management has responsibility for understanding and complying with compliance requirements. & must include the scope of testing of compliance and internal control or if material instances of fraud and illegal acts were discovered

Question 11

What do Government Auditing Standards published by the Government Accountability Office apply to?

Answer 11

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.

Question 12

what types of engagements are under government audit standards

Answer 12

financial audits, attest engagements, and performance audits

Question 13

2 CFR 200

Answer 13

single audit expands the auditors responsibilities to include procedures designed to test and report on compliance matters having a direct and material effect on major federal award programs, can use a risk-based approach