If the Total of Major Federal Programs Was $7,000,000 for an Auditee

question 8

Multiple Choice

If the total of major federal programs was $7,000,000 for an auditee who is not low risk, the percentage of coverage rule would be met if the aggregate of major federal programs were no more than

• A) $7,000,000.
• B) $14,000,000.
• C) $21,000,000.
• D) $28,000,000.

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Definitions:

Cost Of Switching

The cost of switching refers to the expenses and inconveniences a customer or company faces when changing products, services, or suppliers, including termination fees, setup costs, and time.

Incremental Cash Inflow

Additional cash earnings a company receives from undertaking certain actions, such as launching a new product or project.

Net 30 Credit Policy

A payment term that allows a customer 30 days to pay the full amount on an invoice without incurring interest or penalties.

Monthly Interest Rate

The interest rate applied to a loan or debt for each month, often used to calculate the interest expense on outstanding debt for the month.