[AMERICANDREAM]

Hey guys,

my friend just asked me this intriguing question that I couldn’t answer. I’m taking AUD in a few days and would appreciate your help on this!

Question link: https://www.screencast.com/t/c6GLV3KRHka
Becker textbook says that under GAGAS:
* FS Opinion is given.
* Report on internal control and compliance are given (but no opinions)

But in this question, the answer explanation (i.e. opinion is given on compliance in a gov audit) seems to contradict what the textbook says. That is, the explanation says that under GAS audit, auditors will render an opinion. What am I missing here?

Thank you!

AUD - 92
BEC - NINJA in Training
FAR - 90
REG - 88

If you think you failed, you passed.

[AMERICANDREAM]

anyone?

AUD - 92
BEC - NINJA in Training
FAR - 90
REG - 88

If you think you failed, you passed.

[AMERICANDREAM]

bump

AUD - 92
BEC - NINJA in Training
FAR - 90
REG - 88

If you think you failed, you passed.

[Mika]

lol.. realized this is outdated. but here is what I think regarding Government Audits:

You have 3 major types of Government engagements:
1. F/S Audit
2. Attestation engagements
3. Performance Audits

When your main goal is to do a F/S audit, GAGAS does not require you to express an opinion on IC or compliance, but require a separate report—“Yellow Book” Report on IC and compliance.

However, the question is asking for a report on compliance. When your main goal is reporting on compliance, there are only 3 situations that could happen:
1. Report on compliance in connection with an audited F/S ….. here you can only express negative assurance
2. Report on compliance thru attestation engagements (Compliance Examination or Agreed-upon procedures)
*note that compliance examination is the same thing as compliance audit.. we usually use the word “audit” when you are dealing with historical F/S.*
3. Report on compliance and IC over compliance as part of the Single Audit Engagement

Answer A is the exact wording from an opinion paragraph of compliance audit/examination or an opinion paragraph in a single audit report. You provide a positive assurance. It doesn't contradict… Because your aren't doing a government F/S audit, but rather a compliance audit in this question.

hope it helps! 🙂

I believe I can do it... and I will !!

BEC - 91 (passed on 3/9/17)

AUD - 87 (passed on 5/31/17)

FAR - Becker in Training

REG - Becker in Training

[Author]

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