When auditors report on a financial audit engagement in accordance with generally accepted government auditing standards (GAGAS),the basic report(s)include a
A)disclaimer of opinion on financial statements,report on internal control,and report on compliance audit regarding laws and regulations.
B)report (opinion)on financial statements,report on internal control,and report on compliance audit regarding laws and regulations.
C)report on internal control and report(s)on efficiency and effectiveness of operations.
D)report on compliance regarding laws and regulations and report(s)on achievement of program goal(s).

Question

Quizplus · Accepted Answer

Auditors reporting on a financial audit engagement in accordance with GAGAS are required to provide an opinion on the financial statements, report on internal control, and report on compliance audit regarding laws and regulations. Therefore, the best choice is option B. Option A is incorrect because a disclaimer of opinion is only issued when the auditor is unable to obtain sufficient evidence to support an opinion on the financial statements. Option C is incorrect because GAGAS audit engagements also require a report on compliance with laws and regulations. Option D is incorrect because while auditors may report on program goals, it is not one of the basic reports required under GAGAS.

When Auditors Report on a Financial Audit Engagement in Accordance