M8-Single Audits

Question 1

2 CFR 200 single audit expands the auditor’s responsibilities to include procedures designed to test and report on compliance matters having a direct and material effect on major federal award programs. (true or false)

Answer 1

true

Question 2

2 CFR 200 single audit allows auditors to use a risk-based approach to determine major grants. (true or false)

Answer 2

true

The risk-based approach of the Single Audit Act is designed to focus the auditor’s tests of federal financial assistance on the programs with the highest risk.

Question 3

Audits of federal financial assistance under the Single Audit Act require that the auditor determine if the auditee has complied with laws, regulations, and provisions of the contracts or grant agreements. (true or false)

Answer 3

true

Question 4

Under the Single Audit Act, materiality is determined separately for each major federal financial assistance program. (true or false)

Answer 4

true

Question 5

A nonfederal entity that expends federal financial assistance administered by another entity is a sub recipient. For example, a state might receive federal funds and in turn provides those funds to a not-for-profit organization to accomplish an objective (e.g., mental health care, homeless relief, etc.) The not-for-profit organization would be the sub recipient. (true or false)

Answer 5

true

Question 6

If material instances of noncompliance are identified, the auditor should express either a qualified or adverse opinion on compliance. (true or false)

Answer 6

true

Question 7

The auditor should first contact the specific agency that provided the grant to report the fraud. (true or false)

Answer 7

true