Question
Part A of question #1. The concept of materiality for financial statements audited under the Single Audit Act differs from materiality in an audit in
Part A of question #1.
The concept of materiality for financial statements audited under the Single Audit Act differs from materiality in an audit in accordance with generally accepted auditing standards. Under the act, materiality is Calculated without consideration of the auditors risk assessment. Ignored because all account balances, regardless of size, are fully tested. Determined separately for each major federal program. Determined by the federal agency requiring the audit.
Part B. Before issuing an unmodified report on a compliance audit, an auditor becomes aware of an instance of material noncompliance occurring after the period covered by the audit. The least appropriate response by the auditor would be to
Determine whether the noncompliance relates to conditions that existed as of period end or arose subsequent to the reporting period.
Discuss the matter with management and, if appropriate, those charged with governance.
Issue a qualified compliance report describing the subsequent noncompliance.
Modify the standard compliance report to include a paragraph describing the nature of the subsequent noncompliance.
Part C
How does Office of Management and Budget Audit Requirements for Federal Awards (2 CFR 200) define a subrecipient?
As a nonfederal entity that provides a federal award to another entity to carry out a federal program.
As a dealer, distributor, merchant, or other seller providing goods or services that are required for the conduct of a federal program.
As a nonfederal entity that expends federal awards received from another entity to carry out a federal program.
As an individual who receives and expends federal awards received from a pass-through entity.
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