An audit of a government's financial statements,conducted in accordance with generally accepted government auditing standards (GAGAS),includes
A) A determination of efficiency and effectiveness.
B) An examination of the financial statements and underlying records for conformance with generally accepted accounting principles (GAAP).
C) Tests for compliance with laws and regulations.
D) An examination of the financial statements and underlying records for conformance with GAAP and tests for compliance with laws and regulations.

Question

Quizplus · Accepted Answer

According to GAGAS, an audit of a government's financial statements should include both an examination of the financial statements and underlying records for conformance with GAAP, as well as tests for compliance with laws and regulations. Therefore, choice D is the correct answer. Choice A is not necessarily required for a financial statement audit, as the focus of the audit is on the accuracy and completeness of the financial statements, not necessarily efficiency and effectiveness. Choice B is only part of the audit, as it does not include testing for compliance with laws and regulations. Choice C is also only part of the audit, as it does not include examination of the financial statements for conformance with GAAP.

An Audit of a Government's Financial Statements,conducted in Accordance with Generally