A Governmental Auditor Assigned to Audit the Financial Statements of the State

question 103

Multiple Choice

A governmental auditor assigned to audit the financial statements of the state highway department would not be considered independent if the auditor

• A) Also held a position as a project manager in the highway department.
• B) Was the state audit official elected in a general statewide election with responsibility to report to the legislature.
• C) Normally works as a state auditor employed in the department of human services.
• D) Was appointed by the state governor with responsibility to report to the legislature.

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Definitions:

Equity

The residual interest in the assets of a business after deducting its liabilities, representing the ownership interest of shareholders.

Assets

Resources owned by a business or individual that have economic value and can be used to meet debts or commitments.

Liabilities

Financial obligations or debts a company owes to external parties.

Certificate Of Deposit

A Certificate of Deposit is a savings certificate with a fixed maturity date and specified fixed interest rate that is issued by commercial banks.