[hopefulcpa28]

I’m having little difficulty understanding Governmental audit…I’m doing well on the MCQs, but I feel it’s because I’ve memorized the steps for GAGAAS rather than actually understanding it.

So here it is:

It’s different from GAAS because it requires: Compliance and report on IC. This can be issued as a combined report or separate, but regardless it’s for limited use?

Then there’s OMB Circular Act: For those who expend $500,000 or more in federal assistance. Either single audit or program specific audit. Program audits are available for those who don’t require f/s audit and awards are expended under a single federal program.

My questions is:

Are governmental audits restricted in use b/c they report on IC? Because Compliance audits are….

I’m just sketchy on the whole governmental audit, can someone given me a easy/basic rundown? I can pick out the right answer from wrong, but I don’t feel like I know it properly.

Thank you!!!

[misanthrope87]

I'm not sure what your question is. For GAGAs, those are like state compliance audits with state funding. The state has their own guidelines and objectives and you have to test for it. OMB circular act is talking about single audits. This means the federal government gave some government entity funding for certain programs. You have to follow the omb circular 133 guideline and see if the government entity adhered to the rules to run the program. (Sections A-N). GAAS is for straight up financial audit, not government run programs at government entities where you do some sort of compliance audit. At my current governmental client, we have to follow GAAS for the financial audit, GAGAAS for the state compliance audit, and OMB circular 133 for the single audit!

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[Author]

Replies