Under the Single Audit Act, the Required Report on Compliance

question 35

Multiple Choice

Under the Single Audit Act, the required report on compliance and on internal control over financial reporting

• A) Is based on the audit requirements of the GAO's Government Auditing Standards.
• B) Need not be issued if the auditors do not identify internal control deficiencies or instances of noncompliance.
• C) Must be countersigned by the inspector general of the cognizant agency.
• D) Should describe the scope of the auditors' testing.

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Definitions:

Minimal Government Intervention

Minimal government intervention refers to a political and economic philosophy that advocates for the government to interfere as little as possible in the economic decisions of individuals and businesses.

Division of Labor

The separation of the work required to produce a product into a number of different tasks that are performed by different workers; specialization of workers.

Command Systems

Economic systems where production, investment, prices, and incomes are determined centrally by a government.

Pure Capitalism

An economic system characterized by private ownership of the means of production, minimal government intervention, and the free market determining prices and distribution of goods.