ACCOUNTING F/GOV.+NON...(LL)
ACCOUNTING F/GOV.+NON...(LL)
18th Edition
ISBN: 9781266785580
Author: RECK
Publisher: MCG
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Chapter 3, Problem 16.11EP

Which of the following is correct concerning the presentation of the budgetary comparison schedule?

  1. a.   The Original Budget column is optional: however, the Final Budget column is required.
  2. b.   The Variance column is required.
  3. c.   The Actual column is required to be presented using the government’s budgetary basis of accounting.
  4. d.   The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting.
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Cariveh Co sells automotive supplies from 25 different locations in one country. Each branch has up to 30 staff working there, although most of the accounting systems are designed and implemented from the company's head office. All accounting systems, apart from petty cash, are computerised, with the internal audit department frequently advising and implementing controls within those systems. Cariveh has an internal audit department of six staff, all of whom have been employed at Cariveh for a minimum of five years and some for as long as 15 years. In the past, the chief internal auditor appoints staff within the internal audit department, although the chief executive officer (CEO) is responsible for appointing the chief internal auditor. The chief internal auditor reports directly to the finance director. The finance director also assists the chief internal auditor in deciding on the scope of work of the internal audit department. You are an audit manager in the internal audit…
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