The city of Lydell expended federal awards from the following programs during 2019.

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 2 and 4 are classified as low risk, and Program 6 was not assessed for risk due to its small size.
Required
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. How would your answer differ if Program 2 was classified as high risk?

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Program Amount Expended 350,000 200,000 250,000 100,000 75,000 $1,425,000 4. Energy Assistance 5. Economic Development.. ean Water Program . .