For each of the following items, indicate whether the standards are GAAS or GAGAS standards, or both, and why.
- The auditor must identify in the auditor’s report those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period.
- The auditor must adequately plan the work and must properly supervise any assistants.
- Auditors apply certain limited procedures in connection with RSI to provide assurance that it is fairly presented in relation to the basic financial statements.
- Pertinent information should be communicated to individuals contracting for or requesting an audit.
- Known findings and recommendations from previous engagements that directly relate to the current audit should be considered in planning.
- When the financial statement audit report contains an opinion or a disclaimer of opinion, a report on internal control over financial reporting and on compliance with laws, regulations, and provisions of current contracts and grants must be provided as part of the report or as a separate report.
- The auditor exercises due professional care in the performance of the audit and preparation of the report.
- When the audit findings involve deficiencies, the elements (criteria, condition, cause and effect) of the findings should be developed.
- Discussion at a local meeting of the government finance officers centered on using a balanced scorecard to present information to the public on the government’s website. Describe how the components of a balanced scorecard and provide an example of how each component is applicable in a governmental setting.
- Under the hierarchy of Generally Accepted Accounting Principles, describe the sources of accounting principles that have the most authority for state and local governments, federal government entities, and non-government entities. Where do accountants and auditors look when a particular item is not covered within the hierarchy?