The single audit requirement applies to:
A) All audits of state and local government reporting entities.
B) Financial audits of all not-for-profit entities.
C) Most audits of state and local governments expending federal grant funds.
D) Only those governments and not-for-profit entities that are audited by a federal audit agency.

Question

Quizplus · Accepted Answer

The single audit requirement applies to most audits of state and local governments expending federal grant funds. These audits must be conducted in accordance with the Single Audit Act and Office of Management and Budget (OMB) Uniform Guidance. The single audit requirement does not apply to financial audits of not-for-profit entities, as stated in choice B. Choice A is incorrect as it implies that all audits of state and local government reporting entities are subject to the single audit requirement, which is not true. Additionally, choice D is incorrect as it implies that only federal audit agencies are subject to the single audit requirement, which is also not true.

The Single Audit Requirement Applies To