Ch 9: Implications of Audit Service Delivery Methods
About This Chapter
Implications of Audit Service Delivery Methods - Chapter Summary
This chapter explores audit service delivery methods through different lessons. These lessons are filled with a great deal of information that can help you review everything you need to know about government auditing. You will be provided with examples of project grants, and types of contracts and business partnerships. The chapter also addresses the following topics:
- Bureaucracy issues such as red table, duplication and waste
- Benefits and consequences of block grants
- Strict spending rules on categorical grants
- Three forms of contract conditions
- How joint ventures work
- Concepts of centralized authority
- How quasi-official agencies provide services to businesses
- Pros and cons to privatization
By going through all of the lessons in this chapter, you will complete a thorough review of government auditing. The lessons are filled with terms and phrases in bold. This was done to emphasize the importance of specific information in this chapter. When you are done with each lesson, take the lesson quizzes to assess your knowledge and to make sure you are retaining the material.

1. The Problems of Bureaucracy: Contributing Factors
Bureaucracy is designed to help the government run effectively and efficiently, but it can face problems. Learn about five common problems of bureaucracy and their contributing factors, and learn about some attempts at reforming such problems.

2. Project Grants: Definition & Examples
Project grants are financial contributions from the federal government to local governments or individuals. Explore the definition of project grants, look at some examples, and discover reasons for criticism of project grants.

3. Block Grants: Definition & Examples
A block grant is a large amount of money granted to subsidiary authorities by the federal government for general uses, as opposed to categorical grants, which have regulations attached. See examples of grants below, and those that are for, or against, their implementation.

4. Categorical Grants: Definition & Examples
The federal government provides money to states to fund projects through categorical grants. Learn the definition of a categorical grant, the strict conditions for obtaining the monies, and their application through some examples of programs funded by categorical grants.

5. Contract Law Terms: Definitions & Contract Types
Contract law terms include six elements in order to make contracts legal. Explore the six elements and the definitions and types of contracts including express, implied in-fact, implied in-law, and illusory promise.

6. Conditions in Contracts: Definition & Forms
A vital part of a contract is its conditions, which confirm the obligations of both parties entering into the agreement. Learn the definition of contractual conditions and the different types, including condition precedent, condition concurrent, and condition subsequent.

7. What Is a Joint Venture? - Definition & Examples
When two or more people create a temporary partnership for profit, it is called a joint venture. Understand the definition of a joint venture, a joint venture agreement, fiduciaries; and examine examples of a joint venture, and potential legal conflicts that can arise with this type of partnership.

8. The Basics of Partnerships: Types & Examples
Partnerships are a common way to organize a business in the United States. Learn about different types and examples of partnerships and their advantages and disadvantages.

9. Centralized Authority: Definition & Explanation
Centralized authority in an organization can be defined as one where the person at the top makes all the decisions and employees or staff are expected to carry out orders as they flow down. Explore a detailed definition of centralized authority and the advantages and disadvantages, plus find an example of the process of centralized authority.

10. Quasi-Official Agencies: Roles & Purposes
Quasi-official agencies are organizations that don't quite fit within the umbrella of governmental federal agencies. Learn more about what defines quasi-official agencies by evaluating their roles and purposes.

11. What is Privatization? - Definition & Process
Privatization is the process by which the government reduces its role in the economy by transferring ownership of holdings to private individuals or businesses. Learn more about the definition of privatization, explore different types of privatization, and review the process's advantages and disadvantages.
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Other Chapters
Other chapters within the CGAP Exam Study Guide - Certified Government Auditing Professional course
- Auditing Standards & Governance
- Risk/Control Frameworks in Auditing
- Government Auditing Practices: The Audit Function
- Types of Government Audit Services
- Process for Delivery of Audit Services
- Government Auditing Skills & Techniques
- Evaluating Quantitative & Qualitative Data
- Government Auditing: Financial Management
- Implications of Delivering Audit Services to Citizens
- Unique Characteristics of Human Resources Management
- Unique Purchasing & Procurement Requirements
- CGAP Exam Study Guide - Certified Government Auditing Professional Flashcards