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Problem 17-12(LO 4) Audit concerns.The city of Lydell expended federal awards from the following programs during 2019. Program Amount Lydell Community Block Grant 800,000 Hazardous

Problem 17-12(LO 4) Audit concerns.The city of Lydell expended federal awards from the following programs during 2019.

Program

Amount

Lydell Community Block Grant 800,000
Hazardous Waste Management 350,000
Law Enforcement 1,000,000
Energy Assistance 250,000
Economic Development 100,000
Clean Water Program 75,000
2,575,000

Assume the auditor has given an unqualified opinion on the financial statements and reports no material weaknesses or reportable conditions in internal control at the financial statement level. Also, assume the auditor has given an unqualified opinion on the schedule of expenditures of federal awards. Programs 4, 5, and 6 are classified as low risk, and Program 2 was assessed as high risk.

1. Which programs should the auditor audit as major programs for the purpose of internal control evaluation and compliance testing for the year 2019?

2. Are there any nonmajor programs the auditor should audit?

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