Question

In some countries, governmental units have established audit standards. For example, in the United States, the Government Accountability Office has developed standards for the conduct of governmental audits, particularly those that relate to compliance with government grants. In performing governmental grant compliance audits, the auditor should

A. Be guided only by The IIA Standards because they are more encompassing.
B. Be guided only by the governmental standards.
C. Be guided by the more general standards that have been issued by the public accounting profession.
D. Follow both The IIA Standards and any additional governmental standards.

Answer 1

The auditor should follow both The IIA Standards and any additional governmental standards when performing governmental grant compliance audits in the United States.

Step-by-step explanation:

When performing governmental grant compliance audits in the United States, the auditor should follow both The IIA Standards and any additional governmental standards. The IIA Standards provide a comprehensive framework for internal auditing that covers all aspects of the internal audit process, while the governmental standards specifically address compliance with government grants.

By following both sets of standards, the auditor ensures that they are meeting the requirements of both the public accounting profession and the government.