A CPA Prepares 'Working Papers' in an Audit of an Entity

question 28

Multiple Choice

A CPA prepares 'working papers' in an audit of an entity that receives federal financial assistance. Which of the following statements is true with regard to such 'working papers'?

• A) There is no specific standard requiring working papers.
• B) The AICPA has no specific standard requiring working papers, but the GAO standards require working papers.
• C) The AICPA and the GAO standards concerning working papers are the same.
• D) The GAO standards concerning working papers are more rigorous than the AICPA standards.

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Definitions:

Cube Root

The cube root of a number is a value that, when multiplied by itself three times, gives the original number.

Rationalize Denominator

The process of eliminating a radical from the denominator of a fraction by multiplying both the numerator and the denominator by an appropriate quantity.

Rationalize Denominator

The process of eliminating a root from the denominator of a fraction.

Radical Expression

A radical expression is an expression that includes a root symbol, indicating the root of a number or an expression needs to be taken.