Question 1

Essentially, the Government Accountability Office is the largest controller of financial data on private citizens, which makes private citizens accountable for their income taxes.

Accepted Answer

The Government Accountability Office (GAO) is an independent, nonpartisan agency that works for Congress and audits government spending, but it does not control financial data on private citizens nor does it make private citizens accountable for their income taxes. The Internal Revenue Service (IRS) is responsible for tax collection and enforcement.

Question 2

The Inspector General is a cabinet-level post charged with auditing federal agencies and programs.

Accepted Answer

The Inspector General is not a cabinet-level post; Inspectors General are officials in various departments and agencies tasked with preventing and detecting fraud and abuse in their respective organizations.

Question 3

Your cousin, Jake, has been named the Inspector General for the Environmental Protection Agency. You understand this to mean that Jake:
A) Is now a military officer with general status rank.
B) Is the investigative head of the agency to ensure audit and compliance.
C) Inspects the agency for failing to meet standards.
D) B and c

Accepted Answer

The role of an Inspector General, particularly in the context of a government agency like the Environmental Protection Agency (EPA), involves overseeing and ensuring the agency's compliance with laws and regulations (choice B) as well as inspecting the agency for any failures to meet established standards (choice C). This role is not related to being a military officer (eliminating choice A), but rather focuses on audit, investigation, and compliance functions within the agency.

Question 4

The GAO is an acronym for:
A) The General Accounting Office
B) The Government Accountability Office
C) The General Auditing Office
D) None of the above

Accepted Answer

The GAO stands for the Government Accountability Office, which is a legislative branch government agency that provides auditing, evaluation, and investigative services for the United States Congress.

Question 5

Effectiveness or performance auditing is an essentially political activity that must be addressed in apolitical terms.

Accepted Answer

Effectiveness or performance auditing involves evaluating government programs and policies, which can have political implications. However, auditors must approach their work in an objective and apolitical manner to maintain credibility and impartiality.

Question 6

In government parlance program evaluation and policy creation are identical in nature.

Accepted Answer

Program evaluation is the process of assessing the effectiveness and outcomes of a program, while policy creation involves developing strategies and guidelines for action. These are distinct processes with different objectives.

Question 7

Ms. Smith, your supervisor, in the Imperial County Accounting Department tells you (a new employee) that the audit function is:
A) A major branch of the accounting profession
B) Has complex professional standards.
C) Has professional procedures on administration, practice and reporting.
D) All of the above

Accepted Answer

The audit function is indeed a major branch of the accounting profession, characterized by complex professional standards and specific procedures on administration, practice, and reporting, making "All of the above" the correct answer.

Question 8

Mr. Jones is undertaking an audit in the DMV which takes into account financial, efficiency, and managerial practices. He calls this kind of audit:
A) A compliance audit.
B) A comprehensive audit.
C) A continuous audit.
D) A critical-focus audit.

Accepted Answer

A comprehensive audit evaluates financial records, efficiency, and managerial practices, encompassing a broad scope of review areas, which aligns with the description given.

Question 9

An official examination of a financial report submitted by an individual or organization to determine whether it accurately represents expenditures, deductions, or other allowances determined by laws and regulations is called a(n):
A) line-item budget
B) audit
C) cost-benefit analysis
D) integrated budget

Accepted Answer

An audit is the examination of financial reports or statements by an individual or organization to ensure accuracy and compliance with laws and regulations.

Question 10

Internal auditors are always in danger to losing their independence to line management.

Accepted Answer

Internal auditors can lose their independence if they become too close to or influenced by the management of the areas they audit, which can compromise their objectivity and the effectiveness of their audit.

Question 11

According to the late public policy scholar, Aaron Wildavsky, the problem with program evaluation is that:
A) No matter how compelling a case for change was shown, organizations abhor change.
B) Most public managers do not want change suggested in the evaluation.
C) Evaluations seldom consider the costs of change.
D) All of the above

Accepted Answer

Aaron Wildavsky argued that organizations, including public ones, are resistant to change for various reasons, including the discomfort change brings, the potential costs involved, and managerial resistance to externally suggested changes. This encompasses all the options provided, making "All of the above" the correct answer.

Question 12

According to a study conducted by the GAO, the IRS is more likely to catch high-income people who do not file tax returns than lower-income people.

Accepted Answer

The GAO study found that the IRS is more likely to audit lower-income taxpayers, particularly those claiming the Earned Income Tax Credit, than higher-income taxpayers. This is partly due to the fact that auditing lower-income returns is often less complex and requires fewer resources.

Question 13

Which of the following was created by the Budget and Accounting Act of 1921?
A) The Bureau of the Budget, later the Office of Management and Budget
B) The General Accounting Office, later the Government Accountability Office
C) The Treasury Department
D) Both a and b

Accepted Answer

The answer of Which of the following was created by...

Question 14

One can look at the Government Accountability Office as the office of verification for Congress.

Accepted Answer

The Government Accountability Office (GAO) serves as an independent, nonpartisan agency that works for Congress. It investigates how the federal government spends taxpayer dollars, effectively acting as Congress's audit, evaluation, and investigative arm, thereby verifying the use of government resources and operations.

Question 15

An audit by the GAO of the spending on the war in Iraq revealed enormous financial regularities, such that GAO Comptroller General remarked that if the Defense Department were a business, they'd be out of business.

Accepted Answer

The GAO (Government Accountability Office) has indeed reported on financial irregularities and inefficiencies in the spending on the war in Iraq, highlighting issues such as unaccounted funds, overcharges, and lack of oversight, which led to significant waste and mismanagement of resources.

Question 16

Your agency is being audited for compliance and you have to get prepared for it. To you, this means that the auditor will look for:
A) Whether the agency has been compliant with the law
B) The agency's failure to meet standards
C) Conscientious objections to policy
D) A and b

Accepted Answer

Audits typically focus on whether an organization has complied with applicable laws and regulations (A) and whether it has met established standards, which could include identifying any failures to meet those standards (B). Conscientious objections to policy (C) are not typically a focus of compliance audits.

Question 17

Jeremy Bentham wanted governmental institutions to justify themselves on the level of useful welfare that they achieved.

Accepted Answer

Jeremy Bentham, a leading theorist in Anglo-American philosophy of law and one of the founders of utilitarianism, argued that the legitimacy of governmental institutions should be based on the level of utility or welfare they produce. He believed in the principle of "the greatest happiness of the greatest number" as the measure of right and wrong.

Question 18

Efficiency evaluations need to ask the following questions EXCEPT:
A) Is the responsibility for specific tasks clearly delegated?
B) Are employees adequately qualified to perform their tasks?
C) Is the waste of resources being avoided?
D) What entrepreneurial activities have been added?

Accepted Answer

Efficiency evaluations typically focus on how resources are allocated and used, the qualifications of employees to perform tasks, and the clarity of task delegation to ensure optimal performance. Entrepreneurial activities, while important for business growth and innovation, are not directly related to the efficiency of current operations or processes.

Quiz 14: Program Audit Evaluation

Essentially, the Government Accountability Office is the largest controller of financial data on private citizens, which makes private citizens accountable for their income taxes.

The Inspector General is a cabinet-level post charged with auditing federal agencies and programs.

Your cousin, Jake, has been named the Inspector General for the Environmental Protection Agency. You understand this to mean that Jake:

The GAO is an acronym for:

Effectiveness or performance auditing is an essentially political activity that must be addressed in apolitical terms.

In government parlance program evaluation and policy creation are identical in nature.

Ms. Smith, your supervisor, in the Imperial County Accounting Department tells you (a new employee) that the audit function is:

Mr. Jones is undertaking an audit in the DMV which takes into account financial, efficiency, and managerial practices. He calls this kind of audit:

An official examination of a financial report submitted by an individual or organization to determine whether it accurately represents expenditures, deductions, or other allowances determined by laws and regulations is called a(n) :

Internal auditors are always in danger to losing their independence to line management.

According to the late public policy scholar, Aaron Wildavsky, the problem with program evaluation is that:

According to a study conducted by the GAO, the IRS is more likely to catch high-income people who do not file tax returns than lower-income people.

Which of the following was created by the Budget and Accounting Act of 1921?

One can look at the Government Accountability Office as the office of verification for Congress.

An audit by the GAO of the spending on the war in Iraq revealed enormous financial regularities, such that GAO Comptroller General remarked that if the Defense Department were a business, they'd be out of business.

Your agency is being audited for compliance and you have to get prepared for it. To you, this means that the auditor will look for:

Jeremy Bentham wanted governmental institutions to justify themselves on the level of useful welfare that they achieved.

Efficiency evaluations need to ask the following questions EXCEPT: