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; smaller governments are expected to use oversight agencies, the agencies providing more funding than any other agency.
B) A risk-based approach (risk to the auditor) is used to determine which programs are selected by the auditor to audit.
C) Both of the above.
D) Neither of the above.

Question

Quizplus · Accepted Answer

The Single Audit Act and its amendments require a risk-based approach to determine which programs are selected for audit (B). Cognizant agencies are assigned to governments and not-for-profit organizations that exceed $50 million in federal awards to provide guidance, while smaller governments are expected to use oversight agencies - the agencies providing more funding than any other agency (A). Therefore, both statements are true.

Which of the Following Is True Regarding the Single Audit