Generally Accepted Government Auditing Standards (GAGAS)

question 34

Multiple Choice

Generally accepted government auditing standards (GAGAS) :

• A) Establish the same scope as GAAS, but use wording appropriate to governmental entities instead of business organizations.
• B) Are set forth in the Federal Government Compliance Supplement.
• C) Establish more standards that are broader in scope than those found in GAAS.
• D) Establish standard wording of auditor's reports on governmental financial statements.

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Definitions:

Depletion

The allocation of the cost of natural resources over their useful life.

Statutory Depletion

A tax deduction allowing an owner to account for the reduction of a product's reserves.

Financial Reporting

The process of disclosing financial results and related information to stakeholders and the public, which includes balance sheets, income statements, and more.