Skip to main content

Financial Statement Auditing Exam Answer Key - 3526 Verified Questions

Page 1


Financial Statement Auditing

Exam Answer Key

Course Introduction

Financial Statement Auditing provides an in-depth exploration of the principles, methodologies, and standards used in the independent examination of financial statements. The course covers the audit process from planning to the issuance of the auditors report, focusing on risk assessment, internal controls, evidence collection, and ethical responsibilities. Students learn to evaluate the reliability and relevance of financial information, interpret auditing standards, and identify common fraud risks and material misstatements. Practical applications, real-world case studies, and regulatory considerations such as those set by the PCAOB and AICPA are emphasized, preparing students for entry-level positions in public accounting or corporate audit departments.

Recommended Textbook

Auditing and Assurance Services 17th edition by Alvin A. Arens

Available Study Resources on Quizplus

26 Chapters

3526 Verified Questions

3526 Flashcards

Source URL: https://quizplus.com/study-set/2340 Page 2

Chapter 1: The Demand for Audit and Other Assurance Services

Available Study Resources on Quizplus for this Chatper

79 Verified Questions

79 Flashcards

Source URL: https://quizplus.com/quiz/46526

Sample Questions

Q1) Explain what is meant by information risk, and list the four causes of this risk.

Answer: Information risk reflects the possibility that the information upon which the business risk decision was made was inaccurate. Four causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and complex exchange transactions.

Q2) Audits

A) are an assurance service, but not an attestation service.

B) are designed to provide absolute assurance that the financial statements are free of material misstatement.

C) are required for publicly traded companies in the United States.

D) do not require the auditor to express their opinion in a written report.

Answer: C

Q3) An auditor must be competent and have an independent mental attitude.

A)True

B)False

Answer: True

To view all questions and flashcards with answers, click on the resource link above. Page 3

Chapter 2: The CPA Profession

Available Study Resources on Quizplus for this Chatper

100 Verified Questions

100 Flashcards

Source URL: https://quizplus.com/quiz/46527

Sample Questions

Q1) Limited liability companies are structured and taxed like a general partnership, but their owners have limited personal liability similar to that of a general corporation.

A)True

B)False

Answer: True

Q2) In a CPA firm, the audit partner coordinates the performance of audit procedures.

A)True

B)False

Answer: False

Q3) When assessing the risk of material misstatements in the financial statements,

A) inadequate internal control procedures will mitigate client business risk.

B) GAAS specifies in detail how much and what types of evidence the auditor needs to obtain.

C) company management is responsible for determining materiality levels.

D) the auditor must understand the client's business and industry.

Answer: D

To view all questions and flashcards with answers, click on the resource link above.

Page 4

Chapter 3: Audit Reports

Available Study Resources on Quizplus for this Chatper

170 Verified Questions

170 Flashcards

Source URL: https://quizplus.com/quiz/46528

Sample Questions

Q1) A qualified opinion audit report is issued when all auditing conditions have been met, no significant misstatements have been discovered, and it is the auditor's opinion that the financial statements are fairly stated in accordance with GAAP.

A)True

B)False

Answer: False

Q2) When the client fails to include information that is necessary for the fair presentation of financial statements in the body of the statements or in the footnotes,

A) it is the auditor's responsibility to present the information in the audit report.

B) the auditor should issue a qualified or an adverse opinion.

C) the qualification is put in an added paragraph preceding the opinion.

D) all of the above.

Answer: D

Q3) Client imposed restrictions on the audit always require a disclaimer of opinion. A)True

B)False

Answer: False

To view all questions and flashcards with answers, click on the resource link above.

Page 5

Chapter 4: Professional Ethics

Available Study Resources on Quizplus for this Chatper

149 Verified Questions

149 Flashcards

Source URL: https://quizplus.com/quiz/46529

Sample Questions

Q1) Nonaudit services provided that are not prohibited by the Sarbanes-Oxley Act and SEC rules must be preapproved by the company's audit committee.

A)True

B)False

Q2) Imprisonment for a period of six months or longer will result in automatic expulsion from the AICPA.

A)True B)False

Q3) The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position.

A) one year

B) eighteen months

C) three years

D) five years

Q4) Each state also has rules of conduct that are required for licensing by the state. A)True B)False

To view all questions and flashcards with answers, click on the resource link above. Page 6

Chapter 5: Legal Liability

Available Study Resources on Quizplus for this Chatper

147 Verified Questions

147 Flashcards

Source URL: https://quizplus.com/quiz/46530

Sample Questions

Q1) Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include A) employees of the CPA firm.

B) employees of the audit client.

C) other CPA firms engaged to do part of the audit work.

D) specialists employed by the CPA firm to provide technical advice on the audit.

Q2) The 1136 Tenants case was a criminal case concerning a CPA's failure to uncover fraud during a financial statement audit.

A)True

B)False

Q3) Discuss at least three major factors that have contributed to the recent increase in the number of lawsuits against auditors and the size of awards to plaintiffs.

Q4) There are four major sources of an auditor's legal liability. One source is liability to the audit client. List the other three sources.

Q5) An important concept in contract law for accountants to understand is the "third-party beneficiary doctrine." Explain and give an example.

To view all questions and flashcards with answers, click on the resource link above.

Page 7

Chapter 6: Audit Responsibilities and Objectives

Available Study Resources on Quizplus for this Chatper

180 Verified Questions

180 Flashcards

Source URL: https://quizplus.com/quiz/46531

Sample Questions

Q1) It is not difficult for the auditor to quantify a measure of materiality while performing the audit.

A)True

B)False

Q2) As the impact from noncompliance is further removed from affecting the financial statements, the less likely the auditor is to become aware of or recognize noncompliance when auditing the financial statements.

A)True

B)False

Q3) The annual reports of many public companies include a statement about management's responsibilities and relationship with the CPA firm.

A)True

B)False

Q4) Misappropriation of assets are, generally, in dollar amounts which are never material to the financial statements.

A)True

B)False

Q5) List the four phases of a financial statement audit.

To view all questions and flashcards with answers, click on the resource link above. Page 8

Chapter 7: Audit Evidence

Available Study Resources on Quizplus for this Chatper

164 Verified Questions

164 Flashcards

Source URL: https://quizplus.com/quiz/46532

Sample Questions

Q1) Objective evidence is more reliable, and hence more persuasive, than subjective evidence.

A)True

B)False

Q2) Industry comparisons can be used as

A) an aid to understanding the client's business.

B) an indicator of errors.

C) an indicator of fraud.

D) an aid to internal controls.

Q3) When the auditor scans the sales journal looking for large and unusual transactions, he or she is gathering what type of evidence?

A) inspection

B) recalculation

C) physical examination

D) analytical procedures

Q4) An auditor can use engagement management software to facilitate tracking audit progress.

A)True

B)False

To view all questions and flashcards with answers, click on the resource link above. Page 9

Chapter 8: Audit Planning and Materiality

Available Study Resources on Quizplus for this Chatper

172 Verified Questions

172 Flashcards

Source URL: https://quizplus.com/quiz/46533

Sample Questions

Q1) An auditor must evaluate a specialist's professional qualifications and understand the objectives of the specialist's work.

A)True

B)False

Q2) Auditors perform preliminary analytical procedures to better understand the client's business and to assess client business risk.

A)True

B)False

Q3) The primary purpose of allocating the preliminary judgment about materiality to financial statement accounts is to help the auditor decide the appropriate evidence to accumulate.

A)True

B)False

Q4) The preliminary judgment on materiality is compared to the total estimated misstatement amount to determine if an account balance is materially misstated.

A)True

B)False

Q5) Discuss the essential activities involved in the initial planning of an audit.

To view all questions and flashcards with answers, click on the resource link above. Page 10

Chapter 9: Assessing the Risk of Material Misstatement

Available Study Resources on Quizplus for this Chatper

109 Verified Questions

109 Flashcards

Source URL: https://quizplus.com/quiz/46534

Sample Questions

Q1) When assessing risk, it is important to remember that A) for acceptable audit risk, the SEC decides the risk the CPA firm should take for public clients.

B) inherent risk can be changed by the auditor.

C) detection risk can only be determined after audit risk, inherent risk, and control risk are determined.

D) control risk is determined by company management since they are responsible for internal control.

Q2) Financial statement matters like estimates for the allowance for doubtful accounts and allowances for slow-moving inventories, are deemed significant matters which should be addressed by auditor in their assessment of the risk of material misstatement.

A)True

B)False

Q3) Audit assurance is the complement of planned detection risk, that is, one minus planned detection risk.

A)True

B)False

Q4) Why do auditors use the audit risk model when planning an audit?

To view all questions and flashcards with answers, click on the resource link above.

11

Chapter 10: Fraud Auditing

Available Study Resources on Quizplus for this Chatper

139 Verified Questions

139 Flashcards

Source URL: https://quizplus.com/quiz/46535

Sample Questions

Q1) Auditing standards require that the auditor presume that there is a risk of fraud in revenue recognition.

A)True B)False

Q2) When sales returns are understated, net sales is overstated and net income is also understated.

A)True B)False

Q3) Audit committee oversight also serves as a deterrent to fraud by senior management.

A)True

B)False

Q4) If the risk of misstatement due to fraud is increased, the auditor is required to assign a fraud specialist to the audit team.

A)True B)False

Q5) Briefly discuss the brainstorming session required by current auditing standards. Be sure to include a list of ideas that should be addressed in the session.

To view all questions and flashcards with answers, click on the resource link above. Page 12

Chapter 11: Internal Control and Coso Framework

Available Study Resources on Quizplus for this Chatper

151 Verified Questions

151 Flashcards

Source URL: https://quizplus.com/quiz/46536

Sample Questions

Q1) Sarbanes-Oxley requires management to issue an internal control report that includes two specific items. Which of the following is one of these two requirements?

A) a statement that management is responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting

B) a statement that management and the board of directors are jointly responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting

C) a statement that management, the board of directors, and the external auditors are jointly responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting

D) a statement that the external auditors are solely responsible for establishing and maintaining an adequate system of internal control

Q2) Which of the following is not a general control?

A) separation of IT duties

B) systems development

C) processing controls

D) hardware controls

To view all questions and flashcards with answers, click on the resource link above.

13

Chapter 12: Assessing Control Risk and Reporting on

Internal Controls

Available Study Resources on Quizplus for this Chatper

104 Verified Questions

104 Flashcards

Source URL: https://quizplus.com/quiz/46537

Sample Questions

Q1) Flowcharts are harder to read and update than narratives.

A)True

B)False

Q2) An auditor is likely to use four types of procedures to support the operating effectiveness of internal controls. Which of the following would generally not be used?

A) make inquiries of appropriate client personnel

B) examine documents, records, and reports

C) reperform client procedures

D) inspect design documents

Q3) Discuss the advantages and benefits of using generalized audit software.

Q4) As Section 404 of the Sarbanes-Oxley Act requires management to assess and to document the design effectiveness of internal controls over financial reporting, management may have already prepared narratives and flowcharts which the auditor can the use in documenting their understanding of the design of such internal controls.

A)True

B)False

Q5) Name four types of evidence which the auditor uses to obtain an understanding of the design and implementation of controls.

To view all questions and flashcards with answers, click on the resource link above. Page 14

Chapter 13: Overall Audit Strategy and Audit Program

Available Study Resources on Quizplus for this Chatper

119 Verified Questions

119 Flashcards

Source URL: https://quizplus.com/quiz/46538

Sample Questions

Q1) A system walkthrough is primarily used to help the auditor

A) test the ending account balances.

B) test the details of transactions.

C) determine whether internal controls have been properly implemented.

D) determine whether the audit engagement should be accepted.

Q2) If control risk is assessed at maximum, only substantive tests of transactions will be used by the auditor, assuming the audit is of a smaller public company, a nonpublic company, or other type of entity.

A)True

B)False

Q3) Subsequent events represent events that occasionally occur after the balance sheet date, but before the issuance of the financial statements and the auditor's report, that have an effect on the financial statements.

A)True

B)False

Q4) Analytical procedures are the least costly type of audit test.

A)True

B)False

Q5) List each of the five types of audit tests.

To view all questions and flashcards with answers, click on the resource link above. Page 15

Chapter 14: Audit of the Sales and Collection Cycle: Tests of Controls

Available Study Resources on Quizplus for this Chatper

139 Verified Questions

139 Flashcards

Source URL: https://quizplus.com/quiz/46539

Sample Questions

Q1) The prelisting of cash receipts should be prepared by the individual who has primary responsibility for the recording of cash receipts.

A)True

B)False

Q2) The auditor traces items from the source documents to the journals in order to accumulate audit evidence that will satisfy the

A) existence objective.

B) completeness objective.

C) ownership objective.

D) valuation objective.

Q3) Who is generally responsible for opening receipts when a company uses a lockbox to speed the handling of cash receipts?

A) company personnel

B) temporary employees in the town where the lockbox is located

C) bank employees

D) company controller

Q4) Credit should be approved before goods are shipped to a customer.

A)True

B)False

To view all questions and flashcards with answers, click on the resource link above. Page 16

Chapter 15: Audit Sampling for Tests of Controls and

Substantive Tests of Transactions

Available Study Resources on Quizplus for this Chatper

151 Verified Questions

151 Flashcards

Source URL: https://quizplus.com/quiz/46540

Sample Questions

Q1) Nonprobabilistic sampling methods are not based on mathematical probabilities, and therefore the representativeness of the sample may be difficult to determine.

A)True

B)False

Q2) When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use

A) audit sampling.

B) representative sampling.

C) poor judgment.

D) estimation sampling.

Q3) Which of the following is a correct statement regarding probabilistic versus nonprobabilistic sample selection?

A) Auditors may make nonstatistical evaluations when using probabilistic sample selection.

B) The AICPA recommends probabilistic sample selection.

C) Nonstatistical sampling can't provide results that are as effective as a statistical sample.

D) There is only one type of nonprobabilistic sample selection method.

To view all questions and flashcards with answers, click on the resource link above. Page 17

Chapter 16: Completing the Tests in the Sales and Collection

Cycle: Accounts Receivable

Available Study Resources on Quizplus for this Chatper

130 Verified Questions

130 Flashcards

Source URL: https://quizplus.com/quiz/46541

Sample Questions

Q1) When sending confirmations during most audits of accounts receivable, the emphasis is often on confirming larger and older accounts.

A)True

B)False

Q2) Auditors are especially concerned with three aspects of internal control for the sales and collection cycle. Which of the following is not one of their major concerns?

A) controls over cutoff

B) controls that prevent or detect embezzlements

C) controls over sales discounts

D) controls related to the allowance for uncollectible accounts

Q3) A confirmation is a type of audit evidence.

A)True

B)False

Q4) For most audits, a proper cash receipts cutoff is less important than either the sales or the sales returns and allowances cutoff since cash only affects the balance sheet, and not earnings.

A)True

B)False

To view all questions and flashcards with answers, click on the resource link above. Page 18

Chapter 17: Audit Sampling for Tests of Details of Balances

Available Study Resources on Quizplus for this Chatper

129 Verified Questions

129 Flashcards

Source URL: https://quizplus.com/quiz/46542

Sample Questions

Q1) When making statistical inferences, the auditor must remember that A) the true population value must always be known.

B) auditors can state the conclusions drawn from a confidence interval in different ways. C) there can be no possibility that the sample is not sufficiently representative of the population.

D) the knowledge of sampling distributions does not help the auditors to draw statistical conclusions.

Q2) Auditors may find that the use of data analysis techniques allows them to test the entire population of an account balance for certain audit objectives.

A)True

B)False

Q3) The larger the sample size, the more confident the auditor can be that the point estimate is close to the true population value.

A)True

B)False

Q4) Explain acceptable risk of incorrect acceptance and acceptable risk of incorrect rejection within the context of variables sampling.

To view all questions and flashcards with answers, click on the resource link above.

Chapter 18: Audit of the Acquisition and Payment Cycle:

Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Available Study Resources on Quizplus for this Chatper

145 Verified Questions

145 Flashcards

Source URL: https://quizplus.com/quiz/46543

Sample Questions

Q1) Auditors must also take into consideration the identification of material contracts, commitments, and related party transactions which require disclosure in the financial statements and/or the footnotes to the financial statements.

A)True

B)False

Q2) To test for cutoff errors which overstate liabilities, the auditor should trace the receiving reports issued ________ to vendors' invoices.

A) after year-end

B) before year-end

C) the last day of the fiscal year

D) both before and after year-end

Q3) Which of the following is most reliable for verifying the correct balance of accounts payable?

A) vendors' invoices

B) vendors' statements

C) confirmations

D) bills of lading

20

Q4) Discuss each of the four business functions that comprise the acquisition and payment cycle.

To view all questions and flashcards with answers, click on the resource link above.

Chapter 19: Completing the Tests in the Acquisition and Payment

Cycle: Verification of Selected Accounts

Available Study Resources on Quizplus for this Chatper

128 Verified Questions

128 Flashcards

Source URL: https://quizplus.com/quiz/46544

Sample Questions

Q1) The auditor normally does not need to test the accuracy or classification of fixed assets recorded in prior periods if they are the continuing auditor because

A) they are rarely material to the audit.

B) they rarely contain misstatements.

C) they are verified in previous audits.

D) they don't affect the balance sheet.

Q2) The most effective and efficient audit approach in the examination of the income statement would be which of the following?

A) Examine income statement accounts concurrently with the related balance sheet accounts.

B) Compare company's components of net income to other businesses in the same industry.

C) Compare company's components of net income to the previous two years.

D) Examine changes in all balance sheet accounts.

Q3) In auditing depreciation expense, one of the auditor's concerns is determining that the client's calculations are correct. In making this determination, the auditor must weigh four considerations. List these four considerations.

To view all questions and flashcards with answers, click on the resource link above.

Page 21

Chapter 20: Audit of the Payroll and Personnel Cycle

Available Study Resources on Quizplus for this Chatper

129 Verified Questions

129 Flashcards

Source URL: https://quizplus.com/quiz/46545

Sample Questions

Q1) When examining payroll transactions, an auditor is primarily concerned with the possibility of

A) incorrect summaries of employee time records.

B) overpayments and unauthorized payments.

C) under withholding of amounts required to be withheld.

D) posting of gross payroll amounts to incorrect salary expense accounts.

Q2) For most clients, the balance sheet accounts related to payroll are normally insignificant, except for labor charged to inventory.

A)True

B)False

Q3) In auditing payroll, the auditor wants to determine that the individuals included in her sample were employees of the company for the period under review. What is the auditor's best source of evidence?

A) examination of human resource records

B) examination of the payroll master file

C) examination of the payroll transaction file

D) examination of the payroll tax records

Q4) State the purpose and the information contained on the W-2 Form and on the payroll tax returns.

To view all questions and flashcards with answers, click on the resource link above. Page 22

Chapter 21: Audit of the Inventory and Warehousing Cycle

Available Study Resources on Quizplus for this Chatper

146 Verified Questions

146 Flashcards

Source URL: https://quizplus.com/quiz/46546

Sample Questions

Q1) One of the auditor's primary concerns in verifying the transfer of inventory from one location to another is that

A) recorded transfers exist.

B) all actual transfers are recorded.

C) the quantity, date, and description of all recorded transfers are accurate.

D) all of the above.

Q2) Inventory is a complex area to audit for all except which of the following reasons?

A) Inventory is often in different locations.

B) There are several acceptable valuation methods and some entities use different methods for different types of inventory.

C) Inventory is often the largest account on the balance sheet.

D) Inventory valuation includes few estimates.

Q3) State the six functions that make up the inventory and warehousing cycle and, for each function, identify the related documents that would be used by a manufacturing company.

Q4) What are the auditor's primary concerns in verifying the transfer of inventory from one location to another?

Q5) What are two factors affecting the complexity of the audit of inventory?

To view all questions and flashcards with answers, click on the resource link above.

Page 23

Chapter 22: Audit of the Capital Acquisition and Repayment Cycle

Available Study Resources on Quizplus for this Chatper

109 Verified Questions

109 Flashcards

Source URL: https://quizplus.com/quiz/46547

Sample Questions

Q1) Auditors can test whether dividend payments have been made to shareholders by selecting a sample of recorded dividend payments and agreeing payee information to the records produced by the stock transfer agent.

A)True

B)False

Q2) Public companies whose stock is listed on a stock exchange must employ an independent registrar.

A)True

B)False

Q3) The authorization of an issuance of capital stock normally includes all but which of the following?

A) type of stock to be issued

B) number of shares to be issued

C) date shares are to be issued

D) amount of dividend to be paid on shares issued

Q4) List six accounts in the capital acquisition and repayment cycle commonly found on balance sheets of corporations. What characteristics do these accounts have in common that distinguish them from other accounts?

Q5) Discuss the overall objectives of the audit of notes payable.

To view all questions and flashcards with answers, click on the resource link above. Page 24

Chapter 23: Audit of Cash and Financial Instruments

Available Study Resources on Quizplus for this Chatper

145 Verified Questions

145 Flashcards

Source URL: https://quizplus.com/quiz/46548

Sample Questions

Q1) The methodology for auditing year-end cash is generally the same as the auditing for all other balance sheet accounts.

A)True

B)False

Q2) Which of the following is not a "cash equivalent"?

A) time deposits

B) certificates of deposit

C) money market funds

D) marketable securities

Q3) Which of the following misstatements is most likely to be uncovered during an audit of a client's bank reconciliation?

A) duplicate payment of a vendor's invoice

B) billing a customer at a lower price than indicated by company policy

C) failure to record a collection of a note receivable by the bank on the client's behalf

D) payment to an employee for more than the hours actually worked

Q4) A proof of cash includes four reconciliation tasks. List below two of those tasks.

Q5) What should be audited on an interbank transfer schedule?

To view all questions and flashcards with answers, click on the resource link above.

25

Chapter 24: Completing the Audit

Available Study Resources on Quizplus for this Chatper

154 Verified Questions

154 Flashcards

Source URL: https://quizplus.com/quiz/46549

Sample Questions

Q1) Management furnishes the independent auditor with information concerning litigation, claims, and assessments. Which of the following is the auditor's primary means of initiating action to corroborate such information?

A) Request that client lawyers undertake a reconsideration of matters of litigation, claims, and assessments with which they were consulted during the period under examination.

B) Request that client management send a standard inquiry to the client's attorney letter to those lawyers with whom management consulted concerning litigation, claims, and assessments.

C) Request that client lawyers provide a legal opinion concerning the policies and procedures adopted by management to identify, evaluate, and account for litigation, claims, and assessments.

D) Request that client management engage outside attorneys to suggest wording for the text of a footnote explaining the nature and probable outcome of existing litigation, claims, and assessments.

Q2) Distinguish between contingent liabilities and commitments.

Q3) State the three purposes of the management representation letter.

Q4) With what types of contingencies might an auditor be concerned?

To view all questions and flashcards with answers, click on the resource link above.

Page 26

Chapter 25: Other Assurance Services

Available Study Resources on Quizplus for this Chatper

123 Verified Questions

123 Flashcards

Source URL: https://quizplus.com/quiz/46550

Sample Questions

Q1) Two of the types of services provided in connection with the Statements on Standards for Accounting and Review Services are

A) audit and examination services.

B) compilation and review services.

C) examination and review services.

D) management advisory services and compilations.

Q2) Considerable guidance is provided by the AICPA Guide Prospective Financial Statements which includes criteria against which an attestation engagement can be compared.

A)True

B)False

Q3) Define forecast and projection.

Q4) SOC 3 reports are prepared using the Trust Services Criteria.

A)True

B)False

Q5) In an examination engagement for prospective financial statements, the CPA obtains satisfaction as to the completeness and reasonableness of all the assumptions. A)True

B)False

To view all questions and flashcards with answers, click on the resource link above. Page 27

Chapter 26: Internal and Governmental Financial Auditing and Operational Auditing

Available Study Resources on Quizplus for this Chatper

97 Verified Questions

97 Flashcards

Source URL: https://quizplus.com/quiz/46551

Sample Questions

Q1) The Institute of Internal Auditors' Position Paper, "The Role of Internal Auditing in Enterprise-wide Risk Management," highlights six roles internal audit should not undertake within a company related to ERM activities. Name those six roles or activities.

Q2) Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.

A)True

B)False

Q3) Internal auditors are expected to provide value to the organization through improved operational effectiveness.

A)True B)False

Q4) Effectiveness refers to the degree to which costs are reduced without reducing efficiency.

A)True B)False

Q5) In addition to an opinion on whether the financial statements are in accordance with GAAP, identify four other reports required by the OMB Circular A-133/2 CFR 200 subpart F.

28

To view all questions and flashcards with answers, click on the resource link above.

Turn static files into dynamic content formats.

Create a flipbook