CDFM Module 3.4 Exam with Complete
Solutions
The ________phase of a Government Audit defines the scope and methodology to
provide sufficient competent and relevant evidence to achieve the audit objectives. -
ANS-Planning
Which standards apply to Federal Government Audits? - ANS-GAGAS, the yellow book
The minimum number of hours of continuing education an auditor must complete each
year and over a two year period is _______ and ______. At least __________ hours
must be directly related to government functions. - ANS-20, 80, 24
The audit organization has the responsibility for ensuring that independence is
maintained, applicable standards are followed, they have adequate internal controls in
place, they under go external reviews and that audits are conducted by auditors with the
necessary ________. - ANS-skills
Government audits provide essential elements of public accountability and ________. -
ANS-Control
Audits that provide reasonable assurance that financial statements are presented fairly
and whether information is presented in proper format are called___________. - ANS-
Financial and financially related audits
Auditors ________ should provide sufficient information to enable an experienced
auditor with no prior connection to the audit to come to the same conclusion regarding
conclusions and judgments. - ANS-Working Papers
Audits that provide an objective and systematic examination of evidence for the purpose
of providing an independent assessment of an organization is
called_____________________. - ANS-Performance Audits
Audits that determine if resources are protected or used them in the best manner
possible is a _______. - ANS-Performance Audits, Economy and efficiency
_________ in auditing means using sound judgment in establishing scope,
methodology and testing procedures. - ANS-Using professional judgment
, Organizations conducting audits under the GAO guidelines should have an external
peer review performed independent of the audit organization at least once every
_________ years. - ANS-3
Auditor's consideration of materiality is ___________. - ANS-A matter of professional
judgment
True or False? Follow-up is required to determine if material findings have been
corrected from previous audits. - ANS-TRUE
Internal Controls over safeguarding assets should provide _________ regarding
prevention or timely detection of wrongdoing. - ANS-Reasonable Assurance
In audit terminology a(n) ___________is a situation that exists. - ANS-Condition
In audit terminology a(n) ___________is that directive, order or law that determines how
a process is done or presented. - ANS-Criteria
An auditor should have _______, _______, _______ evidence. In other words they
should have an adequate amount of the best available and pertinent evidence available.
- ANS-Sufficient, Competent, Relevant
True or false? Auditors are required to gain an understanding of all management
controls of an activity they are auditing. - ANS-FALSE. Auditors are required to gain an
understanding of the controls in place for the area to be audited. There is no
requirement to have an understanding of all controls in place.
True or false? Auditor's should continue to conduct interrogations of potential violators
in cases when clear evidence of theft has occurred. - ANS-FALSE. Auditors are neither
investigators or law enforcement.
If an auditor is trying to determine if an entity is using resources economically and
efficiently they are conducting an ___________. - ANS-Performance
Using actual copies of invoices vice the use of "hear say" is an example of obtaining
__________evidence. - ANS-Competent
True or False? Obtaining evidence in adequate amounts so that an auditor of similar
experience may reach a similar conclusion is called using due professional care. - ANS-
TRUE
All audits should be _______. - ANS-Planned, Reported, Followed-up
What ways can an auditor obtain an understanding of management controls? - ANS-
Through observation; Through inspection of documents; Through review of other audit
reports
Solutions
The ________phase of a Government Audit defines the scope and methodology to
provide sufficient competent and relevant evidence to achieve the audit objectives. -
ANS-Planning
Which standards apply to Federal Government Audits? - ANS-GAGAS, the yellow book
The minimum number of hours of continuing education an auditor must complete each
year and over a two year period is _______ and ______. At least __________ hours
must be directly related to government functions. - ANS-20, 80, 24
The audit organization has the responsibility for ensuring that independence is
maintained, applicable standards are followed, they have adequate internal controls in
place, they under go external reviews and that audits are conducted by auditors with the
necessary ________. - ANS-skills
Government audits provide essential elements of public accountability and ________. -
ANS-Control
Audits that provide reasonable assurance that financial statements are presented fairly
and whether information is presented in proper format are called___________. - ANS-
Financial and financially related audits
Auditors ________ should provide sufficient information to enable an experienced
auditor with no prior connection to the audit to come to the same conclusion regarding
conclusions and judgments. - ANS-Working Papers
Audits that provide an objective and systematic examination of evidence for the purpose
of providing an independent assessment of an organization is
called_____________________. - ANS-Performance Audits
Audits that determine if resources are protected or used them in the best manner
possible is a _______. - ANS-Performance Audits, Economy and efficiency
_________ in auditing means using sound judgment in establishing scope,
methodology and testing procedures. - ANS-Using professional judgment
, Organizations conducting audits under the GAO guidelines should have an external
peer review performed independent of the audit organization at least once every
_________ years. - ANS-3
Auditor's consideration of materiality is ___________. - ANS-A matter of professional
judgment
True or False? Follow-up is required to determine if material findings have been
corrected from previous audits. - ANS-TRUE
Internal Controls over safeguarding assets should provide _________ regarding
prevention or timely detection of wrongdoing. - ANS-Reasonable Assurance
In audit terminology a(n) ___________is a situation that exists. - ANS-Condition
In audit terminology a(n) ___________is that directive, order or law that determines how
a process is done or presented. - ANS-Criteria
An auditor should have _______, _______, _______ evidence. In other words they
should have an adequate amount of the best available and pertinent evidence available.
- ANS-Sufficient, Competent, Relevant
True or false? Auditors are required to gain an understanding of all management
controls of an activity they are auditing. - ANS-FALSE. Auditors are required to gain an
understanding of the controls in place for the area to be audited. There is no
requirement to have an understanding of all controls in place.
True or false? Auditor's should continue to conduct interrogations of potential violators
in cases when clear evidence of theft has occurred. - ANS-FALSE. Auditors are neither
investigators or law enforcement.
If an auditor is trying to determine if an entity is using resources economically and
efficiently they are conducting an ___________. - ANS-Performance
Using actual copies of invoices vice the use of "hear say" is an example of obtaining
__________evidence. - ANS-Competent
True or False? Obtaining evidence in adequate amounts so that an auditor of similar
experience may reach a similar conclusion is called using due professional care. - ANS-
TRUE
All audits should be _______. - ANS-Planned, Reported, Followed-up
What ways can an auditor obtain an understanding of management controls? - ANS-
Through observation; Through inspection of documents; Through review of other audit
reports
