Audits of State and Local Governments

The AICPA offers a free, daily, e-mailed newsletter covring the day’stop business and financial articles as well as video content, research and analysis concerning CPAs and those who work with the accounting profession. Visit the CPA Letter Daily news box on the www.aicpa.org home page to sign up. You can opt out at any time, and only the AICPA can use your e-mail address or personal information.

Have a technical accounting or auditing question? So did 23,000 other professionals who contacted the AICPA’s accounting and auditing Technical Hotline last year. The objectives of the hotline are to enhance members’ knowledge and application of professional judgment by providing free, prompt, high-quality technical assistance by phone concerning issues related to: accounting principles and financial reporting; auditing, attestation, compilation and review standards. The team extends this technical assistance to representatives of governmental units. The hotline can be reached at 1-877-242-7212.

SOLUTIONS

CHAPTER 1

Practice Question Solutions

1. d.
2. b.
3. d.
4. d.
5. c.
6. d.

Solutions to Knowledge Check Questions

1.    

1. Correct. The state and local government environment is different in a number of ways from business and these differences influence financial reporting objectives.
2. Incorrect. Many governments' resources come from taxes.
3. Incorrect. The organizational purpose of a government is ...