Which of the following is true regarding the Single Audit Act and its amendments?
A) Governments and not-for-profit organizations that exceed $50 million in federal awards are normally assigned a cognizant agency to provide guidance.
B) Smaller governments report to oversight agencies; typically the agency providing more funding than any other agency.
C) Both A and B above.
D) Neither A nor B above.

Question

Quizplus · Accepted Answer

Both statements A and B are correct. Under the Single Audit Act and its amendments, governments and not-for-profit organizations that expend $50 million or more in federal awards during their fiscal year are required to have a single audit performed. These entities are assigned a cognizant agency to provide guidance on how to comply with the auditing requirements. Smaller governments report to an oversight agency, typically the agency providing more funding than any other agency. Therefore, both A and B statements are true.

Which of the Following Is True Regarding the Single Audit