Reference no: EM132829682

Problem 1: Who issues the auditing standards that are applicable to audits of governmental entities?

a. International Auditing and Assurance Standards Board (IAASB).
b. Federal Accounting Standards Advisory Board (FASAB).
c. Governmental Accounting Standards Board (GASB).
d. U.S. Government Accountability Office (GAO).
e. Auditing Standards Board.

Problem 2: An IRS audit that examines whether a taxpayer has prepared a tax return in accordance with the Internal Revenue Code and applicable regulations is best characterized as a (an)?

a. Financial statement audit.
b. Operational audit.
c. Compliance audit.
d. Forensic audit.
e. Really bad day!

Problem 3: Which statement best describes the primary purpose associated with operational audits?

a. To evaluate the efficiency and effectiveness of an entity's business processes.
b. To determine whether an entity is adhering to applicable laws and regulations.
c. To enhance the reliability of financial information provided to external parties.
d. To determine whether there is fraudulent activity within the entity.
e. To obtain evidence as to the operating effectiveness of the entity's internal controls.