The GAO Standards of Reporting for Governmental Financial Audits Incorporate

question 23

Multiple Choice

The GAO standards of reporting for governmental financial audits incorporate the AICPA standards of reporting and prescribe supplemental standards to satisfy the unique needs of governmental audits. Which of the following is a supplemental reporting standard for audits in accordance with Government Auditing Standards?

• A) A report on the entity's internal control.
• B) Material indications of illegal acts should be reported in a document with distribution restricted to senior officials of the entity audited.
• C) Instances of abuse, fraud, mismanagement, and waste should be reported to the organization with legal oversight authority over the entity audited.
• D) All privileged and confidential information discovered should be reported to the senior officials of the organization that arranged for the audit.

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Definitions:

Fluid Intelligence

The ability to think logically and solve problems in novel situations, independent of acquired knowledge.

Sexual Intercourse

A physical act between individuals involving genital contact, commonly associated with reproduction and pleasure.

Irrelevant Stimuli

Distractions or unrelated information that can interfere with the ability to focus on the relevant task or information at hand.

Crystallized Intelligence

The ability to use skills, knowledge, and experience; it tends to increase with age, reflecting accumulated learning.