Objective: The purpose of this exercise is to ensure that students can locate the audit requirements for a Single Audit. Scenario: A nonprofit organization, ABC Youth Services, receives $1.2 million in federal grant funding to provide after-school programs. The organization must comply with the Single Audit Act but is unfamiliar with the audit requirements. To guide the organization, please provide the information below. Use the federal regulations for Single Audits (2 CFR Part 200, Subpart F) as a reference for your responses. Why Is the non-profit subject to the Single Audit Requirements? Cite the federal regulation that applies.

Objective: The purpose of this exercise is to ensure that students can locate the audit requirements for a Single Audit. Scenario: A nonprofit organization, ABC Youth Services, receives $1.2 million in federal grant funding to provide after-school programs. The organization must comply with the Single Audit Act but is unfamiliar with the audit requirements. To guide the organization, please provide the information below. Use the federal regulations for Single Audits (2 CFR Part 200, Subpart F) as a reference for your responses. Why Is the non-profit subject to the Single Audit Requirements? Cite the federal regulation that applies.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Activities Required In Completing A Quality Audit

Section: Chapter Questions

Problem 52MCQ

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In a 3-4 page outline, create an outline of audit requirements that a nonprofit in your state would need to prepare for in conducting their annual audit. • Include the title of the requirement, the related statute, and the actions the organization would need to take to address the requirement. ■ At least one page of this outline should focus on requirements related to the board.
Sandoval Research is required to file its audited financial statements with the Government Accountability Office. Cain & Scutaro, CPAs has been hired to perform the engagement for the year ending December 31, 20x7. Cain & Scutaro has identified several threats to its independence with respect to Sandoval. which of the following potential safeguards might be effective in reducing threats to an acceptable level? a. Consulting with an independent third party. b. Having a professional staff member who was a member of the audit team review the work performed. c. Having a professional staff member who was a member of the audit team review the work performed .d. Allowing a member of the audit tem to have a
https://portal.laserfiche.com/Portal/DocView.aspx?id=638006&repo=r-49e9e584 1. Who is the CPA firm that audited Jefferson City, Missouri in October 31, 2022?2. The type of audit opinion given Jefferson City, Missouri at October 31, 2022?3. What 3 categories of funds does Jefferson City have?4. Which program in Jefferson City has the largest expenses?5. What is the largest source of revenue in Jefferson City for governmental activities?6. What was the October 31, 2022 net position of the airport fund?7. In the October 31, 2022 Statement of Activities how many years of financial information is presented?8. Does Jefferson City have any discretely presented component units? What are they?9. What entities were excluded from Jefferson Cities financial reports?10. Does Jefferson City include Cash Equivalents with its Cash balance?11. What is the threshold amount for capitalizing an asset for depreciation purposes?12. Over what amount of years are traffic lights depreciated?13. List one…
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Pittman City was required to have a single audit due to its spending of a large amount of Federal grant funds. The auditor determined that three of the grants would be classified as "High Risk A" and eight would be "Low Risk A". How many "High Risk B" grants will the auditor now select? A 1 B 2 C) 3 D 4
An unqualified opinion on the financial statements of a local government means that all statements in the comprehensive annual financial report (CAFR) have been audited and conform with GAAP." Do you agree or disagree? Why? Describe the difficulty in comparing the financial performance of a not-for-profit organization to other similar organizations. What benchmarks are available to assist in this task? Describe the treatment of a not-for-profit, nongovernmental foundation that is related to a public university under GASB standards. What are the benefits to a state or local government of establishing an audit committee?
Each of the following situations involves possible violations ofthe AICPA Code of Professional Conduct. For each situation, state whether it is a violationof the Code. In those cases in which it is a violation, explain the nature of the violationand the rationale for the existing rule.a. The audit firm of Miller and Yancy, CPAs, has joined an association of other CPAfirms across the country to enhance the types of professional services the firm canprovide. Miller and Yancy share resources with other firms in the association,including audit methodologies, audit manuals, and common IT systems for billingand time reporting. One of the partners in Miller and Yancy has a direct financialinterest in the audit client of another firm in the association.b. Bruce Sullivan, CPA, is the audit partner on the engagement of Xylium Corporation,which is a public company. In structuring the agreement with the audit committeefor the audit of Xylium’s financial statements, Sullivan included a clause that…
Define the key terms below that relate to auditing of government and not-for-profit organizations in your own words. Be sure that you relate the terms to each other in your paragraph. Attestation engagement Generally Accepted Auditing Standards (GAAS) Opinion audits Materiality Financial audit
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Identification of Audits and Auditors. Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) programaudits. The work can be done by independent (external) auditors, internal auditors, or governmental auditors (including IRS auditors and federal bank examiners). Following is a listof the purpose or products of various audit engagements. [Students may need to refer toChapter 1.]a. Analyze proprietary schools’ spending to train students for oversupplied occupations.b. Determine the fair presentation in conformity with GAAP of an advertising agency’sfinancial statements.c. Study the Department of Defense’s expendable launch vehicle program.d. Determine costs of municipal garbage pickup services compared to comparable servicesubcontracted to a private business.e. Audit tax shelter partnership financing terms.f. Study a private aircraft manufacturer’s test pilot performance in reporting on the resultsof test…
Attorney Letters. Faye Jaworski, CPA, is auditing the financial statements of FulbrightCompany. As she is nearing the audit completion date, Jaworski realizes that she needs toevaluate whether all material contingencies are properly accounted for and disclosed inFulbright’s financial statements. Because of its size, Fulbright has retained external counsel (Vinson, LLP) to handle its various legal matters.Required:a. List some common procedures that Jaworski will perform with respect to Fulbright’slitigation, claims, and assessments.b. What are the responsibilities of Jaworski, Fulbright, and Vinson with respect to litigation, claims, and assessments?c. Attorney letters are used to provide corroboration of litigation, claims, and assessmentsagainst the client. Briefly describe the process through which attorney letters are prepared, sent, and used in the audit examination.d. What information is normally included in an attorney letter?
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