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

Limited Time Offer

25%

Off

Get Premium IIA-CGAP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lucina

2 months ago

Decrease in bond rating and higher financing costs? Ah, the sweet sound of money flying out the window. Option B is the only one that doesn't make my wallet cringe.

upvoted 0 times

...

Gianna

3 months ago

Diminished public trust? Sounds like a real recipe for success. Maybe they can start a 'Name and Shame' tour while they're at it.

upvoted 0 times

Lizbeth

2 months ago

C) Possible regulatory violations and Diminished public trust.

upvoted 0 times

...

Dorothy

2 months ago

B) improves financial credibility.

upvoted 0 times

...

Brandon

2 months ago

A) Qualified or adverse opinion on financial statements from external auditors.

upvoted 0 times

...

Jolene

3 months 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.

upvoted 0 times

Lavelle

3 months ago

User 2: Definitely, it can have serious consequences for the organization.

upvoted 0 times

...

Meaghan

3 months ago

User 1: I agree, having a qualified or adverse opinion on financial statements is not ideal.

upvoted 0 times

...

Justine

3 months ago

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

upvoted 0 times

...

Rocco

3 months 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.

upvoted 0 times