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.

---

Definitions:

Group Development

The process through which a group evolves over time, often described through stages such as forming, storming, norming, performing, and adjourning.

Evaluation

The systematic process of assessing the value, importance, or effectiveness of something through analysis and comparison of data.

Concomitant Variation

A phenomenon where changes in one variable are associated with changes in another variable, suggesting a possible correlation or causal relationship.

Causality

The relationship between cause and effect, where one event (the cause) brings about another event (the effect).