Chp_12_Homework

Chp_12_Homework - Chapter 12 - Auditing of Governmental and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 12 - Auditing of Governmental and Not-for-Profit Organizations CHAPTER 12: AUDITING OF GOVERNMENTAL AND NOT-FOR- PROFIT ORGANIZATIONS Answers to Questions 12-1 The three levels of audit are generally accepted auditing standards (GAAS), generally accepted governmental auditing standards (GAGAS), and the single audit. GAAS standards are established by the AICPA, while the Government Accountability Office (GAO) establishes GAGAS. The single audit is the result of a law enacted by Congress. However, regulation related to implementation of the law is established by the Office of Management and Budget (OMB) and is available to users in Circular A-133 and the related Compliance Supplement. 12-2 An opinion unit is related to the financial reporting format of governments. Opinion units include: governmental activities, business-type activities, aggregate discretely presented component units, each major governmental and enterprise fund, and the aggregate remaining funds. Auditors need to know the number of the client’s opinion units since the auditor is required to opine on each unit. Because an opinion is needed on each unit, GAAS requires that
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/08/2010 for the course ACT ACT3394 taught by Professor Paul during the Fall '10 term at Troy.

Page1 / 2

Chp_12_Homework - Chapter 12 - Auditing of Governmental and...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online