Which of the following is true regarding the Single Audit Act and its amendments?
A) All governmental entities with expenditures of federal funds in excess of $750,000 must have a single audit, if more than one program exists.
B) An audit must be designed to cover 25 percent of federal funds expended, unless the organization is deemed to be low risk.
C) Both A and B above.
D) Neither A nor B above.

Question

Quizplus · Accepted Answer

Entities that expend $750,000 or more in federal awards in a fiscal year have either a single audit when several grantors are involved) or a program-specific audit usually when only one grantor is involved). 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