Which of the following is true regarding the Single Audit Act and its amendments?
A) Major programs selected for audit must equal 50 percent or more of federal expenditures, unless the organization is deemed to be low risk.
B) Separate reports are filed with every federal agency from which the audited organization receives funds.
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. The single audit allows auditors conducing the regular financial audits of state and local governments and not-for-profits to provide assurance to the federal government that federal funds are expended in accordance with grant agreements and with financial management and other standards promulgated by the federal government. This is more efficient than having grant-by-grant audits supervised by each agency that provides funds.

Which of the Following Is True Regarding the Single Audit