tailieunhanh - Lecture Accounting for Governmental & Nonprofit Entities (16/e): Chapter 11 - Jacqueline L. Reck, Suzanne L. Lowensohn

Chapter 11 - Auditing of governmental and not-for-profit organizations. After studying Chapter 11, you should be able to: Explain the essential elements of financial audits by independent CPAs; explain what is meant by GAGAS, the source of GAGAS, and why and how GAGAS are broader than GAAS; explain the types of audits performed under GAGAS, including financial audits, attestation engagements and performance audits. | Accounting for Governmental & Nonprofit Entities JACQUELINE L. RECK SUZANNE L. LOWENSOHN 17/e Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 Auditing of Governmental and Not-for-profit Organizations C H A P T E R 11 2 Learning Objectives 11-1 Explain the essential elements of financial audits by independent CPAs, including: The objective(s) of financial audits. The source and content of generally accepted auditing standards (GAAS). Audit report formats and opinions. The audit process. 3 1 Learning Objectives 11-2 Explain what is meant by generally accepted government auditing standards (GAGAS), the source of GAGAS, and why and how GAGAS are broader than GAAS. 11-3 Explain the types of audits performed under GAGAS, including financial audits, attestation engagements, and performance audits. 4 1 Learning Objectives 11-4 Explain the essentials of a single audit, including: The . | Accounting for Governmental & Nonprofit Entities JACQUELINE L. RECK SUZANNE L. LOWENSOHN 17/e Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 Auditing of Governmental and Not-for-profit Organizations C H A P T E R 11 2 Learning Objectives 11-1 Explain the essential elements of financial audits by independent CPAs, including: The objective(s) of financial audits. The source and content of generally accepted auditing standards (GAAS). Audit report formats and opinions. The audit process. 3 1 Learning Objectives 11-2 Explain what is meant by generally accepted government auditing standards (GAGAS), the source of GAGAS, and why and how GAGAS are broader than GAAS. 11-3 Explain the types of audits performed under GAGAS, including financial audits, attestation engagements, and performance audits. 4 1 Learning Objectives 11-4 Explain the essentials of a single audit, including: The purpose and scope of a single audit. Major program identification. Audit work required. Reports that must be submitted. 11-5 Discuss special topics related to audits of governments and not-for-profit organizations. 5 1 Fundamentals of Financial Audits Financial statements that have been audited provide financial statement users with a higher level of confidence in the information contained within the statements. The auditor’s objective in performing a financial audit is to render a report expressing his or her opinion that the financial statements are presented fairly. “Present fairly” means in conformity with generally accepted accounting principles. Government and Not-for-profit Audits Generally Accepted Auditing Standards Audits of state and local governments may be performed by independent certified public accountants (CPAs) or by state or federal audit agencies. The AICPA’s Code of Professional Conduct requires CPAs to follow generally accepted auditing standards (GAAS)—standards .