IIA Exam IIA-CGAP Topic 2 Question 71 Discussion

Actual exam question for IIA's IIA-CGAP exam

Question #: 71
Topic #: 2

If the state and local governments are not ready to meet the guidelines of GASB 34, the consequences may be serious and costly. The implications of noncompliance include all of the following EXCEPT:

AQualified or adverse opinion on financial statements from external auditors.

Bimproves financial credibility.

CPossible regulatory violations and Diminished public trust.

DDecrease in bond rating and corresponding increase in cost of financing debt.

Show Suggested Answer

Suggested Answer: D

by Fausto at Feb 07, 2024, 11:02 PM

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Jolene

6 days ago

Hmm, I don't know about you, but I prefer my financial statements to be qualified or adverse-free, thank you very much. Option B is clearly the odd one out here.

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Justine

7 days ago

That's right. It can also lead to regulatory violations and decreased public trust.

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Rocco

8 days ago

Wait, so you're telling me that not meeting GASB 34 guidelines can actually improve financial credibility? That's like saying a speeding ticket will make you a better driver.

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Skye

12 days ago

Yeah, like getting a qualified or adverse opinion from auditors.

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Justine

15 days ago

I think not meeting GASB 34 guidelines can have serious consequences.

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