Which of the following is true regarding the Single Audit Act and its amendments?
A) An auditor is expected to express an opinion on "major programs," which are chosen based on size.
B) An auditor is required to select all "Type A" programs as major programs.
C) Both A and B above.
D) Neither A nor B above.

Question

Quizplus · Accepted Answer

Major programs are determined on a risk-based approach not by size. The auditor is required to express an opinion on compliance for major programs, which generally must add up to 50% of the federal funds expended by the auditee. This percentage is reduced to 25% if the auditee is determined by the auditor to be a low-risk auditee.

Which of the Following Is True Regarding the Single Audit