Ohio Compliance Auditor Exam Practice

Ohio Compliance Auditor Exam Practice Questions And Correct Answers (Verified Answers) Plus Rationales 2025|2026 Q&A | Instant Download Pdf

Q1. The primary purpose of a compliance audit is to:

• Evaluate financial statements
• Determine adherence to laws and regulations
• Improve operational efficiency
• Detect fraud

Rationale: Compliance audits focus on determining whether entities follow

applicable laws, rules, and regulations.Q2. Which organization sets the auditing standards for governmental audits in Ohio?

• Financial Accounting Standards Board (FASB)
• Securities and Exchange Commission (SEC)
• Government Accountability Office (GAO) 1 / 3

• Ohio Ethics Commission

Rationale: The GAO issues the Government Auditing Standards (Yellow

Book), which apply to state and local government audits.

Q3. The Yellow Book requires auditors to maintain:

• Professional independence
• Confidentiality only
• Independence in mind and appearance
• Objectivity but not independence

Rationale: Both independence of mind and appearance are required under

Government Auditing Standards.

Q4. An internal control system primarily helps to:

• Replace management oversight
• Guarantee compliance
• Prevent and detect errors and fraud
• Eliminate audit risks

Rationale: Internal controls are designed to prevent and detect errors and

irregularities, not eliminate all risk.

Q5. In Ohio, the Auditor of State’s Office is responsible for:

• Approving tax returns
• Auditing public offices and political subdivisions
• Managing public pensions
• Issuing bonds 2 / 3

Rationale: The Auditor of State audits all public offices within Ohio for

compliance and accuracy.

Q6. The term “materiality” refers to:

• The size of the organization
• The significance of an error or omission
• The total audit time
• The financial position of the state

Rationale: Materiality measures whether an error would influence users’

decisions.

Q7. A risk-based audit approach focuses primarily on:

• Areas with higher risk of misstatement or noncompliance
• All transactions equally
• Auditor convenience
• Historical data only

Rationale: The risk-based approach targets high-risk areas to use audit

resources efficiently.

Q8. A finding in a compliance audit must include:

• Financial ratios
• Auditor’s opinions
• Condition, criteria, cause, and effect
• Statistical samples only

Rationale: Government Auditing Standards require findings to contain

these four elements.

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