The Single Audit Act Distinguishes Between Major and Nonmajor Federal

question 9

Multiple Choice

The Single Audit Act distinguishes between major and nonmajor federal programs. One factor that distinguishes a major from a nonmajor program is inherent risk. Which of the following is NOT a characteristic of "inherent risk"?

• A) Significant prior audit findings.
• B) Significant violation of the terms of a specific grant due to a misunderstanding of the requirements.
• C) Weakness in the entity's internal controls.
• D) Lack of oversight by federal agencies.

Understand the benefits of adding international stocks to a U.S. stock portfolio for diversification.

Grasp the principles of effective international diversification.

Know the definitions and purposes of ADRs and WEBS.

Analyze the appropriateness of using the S&P 500 as a proxy for the global market portfolio.

---

Definitions:

Court Orders

Legal commands issued by a court or judge, requiring individuals or entities to perform or refrain from performing specific acts.

Private Agreement

An arrangement or contract made between parties without formal, public, or official announcement or documentation.

Due Process Clause

A constitutional provision guaranteeing fair treatment through the normal judicial system, especially as a citizen's entitlement.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, that grants citizenship to all persons born or naturalized in the United States, including former slaves, and provides all citizens with equal protection under the laws.