Question

Dupage Water District is a not-for-profit entity that received federal financial assistance during the year. The...

Dupage Water District is a not-for-profit entity that received federal financial assistance during the year. The District engaged an auditor for the annual audit of its financial statements. In compliance with Government Auditing Standards, the auditor also designed his audit of the District to provide reasonable assurance of detecting material misstatements resulting from illegal acts. What additional requirements does the auditor have with regard to the entity’s compliance?

  1. None.
  2. The auditor must design the audit to provide reasonable assurance of detecting noncompliance with terms of grants and contracts.
  3. The auditor must design the audit to provide reasonable assurance of detecting all misstatements resulting from illegal acts.
  4. The auditor must design the audit to provide reasonable assurance of detecting any fraud.

Homework Answers

Answer #1

b The auditor must design the audit to provide reasonable assurance of detecting noncompliance with terms of grants and contracts.

B is the correct since, being a non profit organization, receiving the FEDRAL financial assistance, auditor is required to check whether all the compliance with terms of assistance has been met with. All ither points mentioNed are a part of normal audit which will be carried out otherwise as well. Additionally the auditor will be required to meet (b) part.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
19.   Under to PSA 260, those matters that arise from the audit of financial statements and...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and in the opinion of the auditor, are both important and relevant to those charged with governance in overseeing the financial reporting and disclosure process are called a.   Audit matters of governance interest b.   Significant audit matters c.   Auditor findings d.   Material misstatement in the financial statements 20.   Audit matters of governance interest to be communicated to those charged with governance ordinarily include a.   Audit...
A walkthrough is: a brief tour of a client's office, warehouses, manufacturing and other operating facilities...
A walkthrough is: a brief tour of a client's office, warehouses, manufacturing and other operating facilities consists of the auditor following one or more transactions through the entire accounting process normally used to obtain substantive evidence as to whether an account is fairly presented performed near the end of the audit to be satisfied that all relevant assertions have been tested Substantive tests: are procedures designed to test for monetary misstatements in financial statement accounts and disclosures are used to...
Hi. I want to get feedback on this question. What should i add or remove or...
Hi. I want to get feedback on this question. What should i add or remove or any correction. Boulded written is question and regulat writing is answer. Please guide. Thank you. BACKGROUND Apply audit risk and materiality concepts to address the following circumstances regarding Able & Baker LLP’s audits of the financial statements of Foster Engineering, Inc. 1. Able & Baker LLP auditors are beginning their audit of Foster’s 2017 financial statements. Because of changes in the market and increased...
Evaluating a potential client requires which of the following steps? Question 21 options: 1) Communicate with...
Evaluating a potential client requires which of the following steps? Question 21 options: 1) Communicate with the predecessor auditor. 2) Preplan the audit. 3) Establish the terms of the engagement. 4) None of these. Question 22 (3 points) What factor would most likely would cause a CPA not to accept a new audit engagement? Question 22 options: 1) the prospective client's unwillingness to permit inquiry of its legal counsel 2) the inability to review the predecessor auditor's documentation 3) the...
Which term would best describe Just for FEET, Inc.’s increase in outstanding vendor allowance receivables of...
Which term would best describe Just for FEET, Inc.’s increase in outstanding vendor allowance receivables of $400,000 at the end of fiscal 1997 to nearly $29,000,000 at the end of fiscal 1998? Most likely true (highly probable) Fifty-fifty chance of being true Impossible/unbelievable Normal PSLRA is the anachronism for: Private Securities Liabilities Refund Act. Private Securities Litigation Reform Act. Pennsylvania State Legislators’ Retirement Account. Professional Society for Less Restrictive Auditing. Which of the following are key features of the PSLRA?...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational leadership b. Moral manager c. Social learning theory d. Moral intensity [The following information applies to the question.] In Chapter 4 we discussed the artificial tax shelter arrangements developed by KPMG LLP for wealthy clients that led to the settlement of a legal action with the Department of Treasury and the Internal Revenue Service. On August 29, 2005, KPMG admitted to criminal wrongdoing and...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT