In All Audits of Governmental Units Performed According to GAGAS,the

question 28

Multiple Choice

In all audits of governmental units performed according to GAGAS,the most important work is

• A) Compliance auditing.
• B) Obtaining a sufficient understanding of internal control.
• C) Documentation of the audit.
• D) Exit interviews with managers in the governmental unit.

---

Definitions:

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries to present as if the group of companies was a single economic entity.

Amortization

The gradual reduction of a debt or the cost of an intangible asset over a specified period of time.

Acquisition

The method where one corporation acquires the majority or entirety of another corporation's shares to obtain dominance over that corporation.

Fair Value

A financial accounting term used to describe the estimated market value of an asset or liability based on current market conditions.