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•&nbspFrom the first e-Activity, note that the GAO could not

    • From the first e-Activity, note that the GAO could not issue anopinion on the financial statements of the US government. Evaluate how thiscould occur considering the requirements of OMB Circular A-123.•  What steps would you take to alleviate the internalcontrol problems? Differentiate between the requirements for internal controlsin government agencies and those in public companies. • Under pressure to balance their budgets, governments at alllevels have resorted to fiscal gimmicks, such as delaying the wages and salaryof government employees from the last day of the month to the first day of thefollowing month. In the year of the change, they thereby had one fewer periodto pay. • Determine how such a change would affect the reported expendituresof a governmental fund under GAAP. Provide specific examples to support yourresponse.  Evaluatethe impact of GASB Interpretation No.6, Recognition and Measurement of CertainLiabilities and Expenditures in Governmental Fund Financial Statements on theaccrual and payment of the salaries.

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