1. Create the Ethics CaseRequired: Create a hypothetical ethics case (situation), then describe the guidance that applies to this issue. The simplest way to complete this assignment is by “backing into” a case idea by looking up the guidance in the AICPA’s revised Code of Conduct then inventing a hypothetical situation based on this guidance. However, you can be creative in how you come up with case ideas. For example, you can generate ideas using news stories, AICPA disciplinary actions, your own experiences, and so on. After describing a hypothetical ethics situation, locate ethics guidance that addresses this issue. Limit your search for advice to the AICPA’s revised Code of Conduct. Document your case and guidance as follows: Situation: Applicable Guidance (and how it would apply to this issue): Inspiration for this case idea (how did you come up with this case idea?)
6. Aside from general purpose state and local governments, three other types of entities that may be subject to GASB’s accounting standards are?
8. When searching for GASB guidance, why is it preferable to use the GASB Codification, as opposed to searching for individual standards on the GASB’s website?
9. Are the GASB’s original pronouncements (used to populate the Codification) authoritative? Explain.
11. Is guidance issued by the FASAB referred to as “GAAP”? Explain.
15. Who audits government financial statements?
16. What is the role, in part, of the Office of the Inspector General, within a given federal agency?
17. Are auditors subject to the GAO’s Yellow Book also required to comply with AICPA audit standards? Explain the relationship between the Yellow Book and AICPA guidance.
20. Assume you have written a memo and included the following citation. How might you abbreviate future references to guidance from this standard, within the same memo? Per Statement of Federal Financial Accounting Standards No. 1, Accounting for Selected Assets and Liabilities, par. 18, “intragovernmental assets and liabilities arise from transactions among federal entities.
a. Using the GASB Codification, locate and describe the requirement that each governmental entity should publish an annual comprehensive annual financial report (CAFR). Name two items that should be included in the financial section of the CAFR.
b. Next, describe what “Part” (I, II, III, or IV) of the GASB Codification this requirement is included within, and why.
Using the GASB Codification:
a. What measurement attribute is generally used to account for inventory?
b. Provide both the GASB Codification reference to this guidance, as well as the original GASB standard number. Describe how you located the original GASB standard number.
5. Using the GASB Codification: Are budgetary comparison schedules required to be included in the CAFR? Explain, and cite your source.
18. Citing Governmental Accounting Standards. Imagine you are writing a memo and including the following excerpt from FASAB guidance: “A liability for federal accounting purposes is a probable future outflow or other sacrifices of resources as a result of past transactions or events.” Locate this quote in the FASAB Handbook and write out the full source citation for this quote. Assume this is the first reference to FASAB guidance that you are including in your memo
22. Planning a Performance Audit You have been assigned to a performance audit of a local government, focused on compliance with requirements for state grant funds. Assume that you are just beginning to plan your audit. Considering guidance in the GAO’s Yellow Book, summarize some of the most important steps you should take in this Planning phase of your audit
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