Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 542

CPA Involvement in an Expanded-Scope Audit. A public accounting firm has been engaged to audit a local food distribution program funded by the U.S. Department of Agriculture. The engagement is to encompass both financial and performance audits that constitute the expanded scope of a GAGAS audit and is to be conducted in accordance with the audit standards published by the Government Accountability Office (GAO).
Required:
a. The accountants should perform sufficient audit work to satisfy the financial and compliance element of GAGAS. What is the objective of such audit work? ( Hint: Go to the Generally Accepted Government Auditing Standards at www.gao.gov.)
b. The accountants should be aware of general and specific kinds of uneconomical or inefficient practices in such a program. What are some examples?
c. What might be some standards and sources of standards for judging program results?