AUD 5.8 - Single Audits

Question 1

Audis of receipts to of federal financial assistance should be conducted in accordance with:

Answer 1

GAAS and GAGAS

Question 2

What additional requirements does an audit of federal financial assistance require?

Answer 2

Expanded internal control documentation and testing
Formal written reports on the consideration of internal control and the assessment of control risk
Whether the federal financial assistance has been administered in accordance with applicable laws and regulation (compliance requirements)
Application of single audit standards to federal financial assistance

Question 3

Requires entities that expend total federal assistance equal to or in excess of $750,000 in a fiscal year to have an audit performed in accordance with this.

Answer 3

Single audit act

Question 4

The single audit act allows for what two types of audits:

Answer 4

Single audit or program-specific audit

Question 5

This type of audit under the single audit act is only available to certain grant recipients who expend awards under a single federal program and do not require a financial statement audit

Answer 5

Program specific audit

Question 6

What are the two main objectives of a single audit?

Answer 6

1. Audit of the entity’s financial statements and reporting on a separate schedule of expenditures of federal awards
2. Compliance audit of federal awards expended during the year

Question 7

The single audit act requires that materiality be:

Answer 7

Considered separately in relation to each major program rather than in relation to the financial statements as a whole

Question 8

Programs classified as “major” are:

Answer 8

Those that expend $750,000 or more in federal financial assistance
Or
Classified as high risk

Question 9

Who is subject to audit requirements associated with federal financial assistance:
Contractors
Federal award recipients
Sub-recipients

Answer 9

Federal award receipt ends and sub-recipients

Not contractors

Question 10

In order to have a program specific audit instead of a single audit, the auditor must:

Answer 10

Contact the inspector general of the applicable federal agency and obtain a current program-specific audit guide

Question 11

How are single audits different from program specific audits?

Answer 11

Single audits: include a report on the financial statements of the whole organization and audit reports on specific programs

Program specific audit: do not include reports on the financial statements of the organization as a whole

Question 12

Auditors must be selected how?

Answer 12

Using procurement standards that preclude limitations on competition established by federal guidelines

Question 13

Proposals made by auditors for selection must be evaluated for:

Answer 13

Responsiveness
Relevant experience
Availability
Results of peer reviews

Question 14

The audit report must be submitted within the earlier of:

Answer 14

30 days of receipt of the auditors report
Or
9 months after the end of the audit period

Question 15

Reports must be retained for:

Answer 15

3 year from the date of submission

Question 16

The audit report must be submitted in what format? And who is responsible for report submissions?

Answer 16

Electronically and the auditee

Question 17

In the auditors report, the auditor should express and opinion on what and report on what?

Answer 17

Express an opinion on the financial statements
Express and opinion on the Schedule of Expenditures of Federal Awards
Report on internal control over financial reporting AND compliance with federal statues
Report on compliance for each major program and report on internal control over compliance

Question 18

The five reports issued under a single audit include:

Answer 18

1. Financial statement report (GAAS)
2. SEFA Report
3. GAGAS Report (Yellow Book)
4. Single audit report
5. Schedule of findings and questioned costs

Question 19

The determination of major programs uses what approach?

Answer 19

Risk based approach

Question 20

Step 1 of identifying major programs includes determining Type A and Type B programs. What are these considered?

Answer 20

Type A : $750,000 or more
Type B : less than $750,000

Question 21

Step 2 of identifying major programs includes identifying Type A programs that a are low risk. Type A programs cannot be low risk if they had:

Answer 21

1. Material weakness in internal control
2. Modified opinion on the program
   Or
3. Known or likely questioned costs that exceed 5% of the total federal awards expended in that program

Question 22

Step 3 of identifying major programs includes identifying:

Answer 22

Type B programs that are high risk using professional judgement

Question 23

At a minimum, major programs should include:

Answer 23

All high risk Type A and Type B programs

Question 24

For low risk auditees, the auditor must test:
For other auditees, the auditor must test:

Answer 24

Low risk: 20% of the total federal awards expended
Others: 40% of the total federal awards expended

Question 25

What are criteria for a low risk auditee:

Answer 25

Singl audits have been performed on an annual basis for two years
No material weaknesses in internal controls
Financial statements received an unmodified opinion
No going concern contingencies

Question 26

Who requires the following report: Opinion (or disclaimer) on financial statements and supplementary schedule of expenditures of federal awards.
GAAS, Government Auditing Standards, or Single Audit Act?

Answer 26

GAAS
Government Auditing Standards
Single Audit Act

Question 27

Who requires the following report: report on internal o troll and compliance with provisions of laws, regulations, contracts, and grant agreements.
GAAS, Government Auditing Standards, or Single Audit Act?

Answer 27

Government Auditing Standards
Single Audit Act

Question 28

Who requires the following report: report on compliance and internal control over compliance applicable to each major program. This report must include an opinion (or disclaimer) on compliance.
GAAS, Government Auditing Standards, or Single Audit Act?

Answer 28

Single Audit Act

Question 29

Who requires the following report: schedule of findings and questioned costs.
GAAS, Government Auditing Standards, or Single Audit Act?

Answer 29

Single Audit Act