Compliance auditing in audits performed under the Single Audit Act of 1984 in accordance with GAGAS is necessary for an auditor's
A) Report on the auditee's internal control, including reportable conditions and material weaknesses.
B) Opinion on the auditee's observance, or lack thereof, of applicable laws and regulations.
C) Opinion on the auditee's financial statements.
D) Report of a supplementary schedule of federal assistance programs and amounts.

Question

Quizplus · Accepted Answer

Compliance auditing is necessary for an auditor's opinion on the auditee's observance, or lack thereof, of applicable laws and regulations. This is a key component of a Single Audit performed under the Single Audit Act of 1984 in accordance with GAGAS. The other options listed are also important components of a Single Audit, but they do not specifically relate to compliance auditing.

Compliance Auditing in Audits Performed Under the Single Audit Act