An Independent CPA Is Conducting an Audit of an Entity

question 60

Multiple Choice

An independent CPA is conducting an audit of an entity that receives federal financial assistance and is subject to the GAO standards (GAGAS) . The auditor must design the audit to provide reasonable assurance of detecting which of the following?

• A) Immaterial misstatements, if they result from illegal acts.
• B) Noncompliance with entity policies and procedures.
• C) Noncompliance with the terms of contracts or grant agreements.
• D) All of the above.

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Definitions:

Two-Sided Messages

Communication that presents both positive and negative aspects of a subject, thereby appearing more balanced and credible to the audience.

Educated Audiences

Groups of individuals who are knowledgeable or have a significant understanding of a particular subject matter.

Disagrees With Position

The act of not sharing the same opinion, view, or stance as someone else on a particular issue or topic.

Resources

Assets or materials that can be drawn upon by an individual or organization to function effectively and achieve goals.