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.

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Definitions:

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Stretch Goals

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