Select the Key Term That Relate to Single Audits from the List

question 37

Essay

Select the key term that relate to single audits from the list that best matches with the following definition.
 
A. Risk-based approach
B. Single audit
C. Questioned cost
D. Material weakness
E. Oversight agency
F. Major programs
G. Cognizant agency
H. Significant deficiency
________ 1. The federal agency that makes the predominant amount of direct funding to the nonfederal entity receiving less than $50 million in federal awards
________ 2. A deficiency in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis
________ 3. An audit prescribed by federal law for state and local governments and not-for-profit organizations that expend more than $750,000 in a fiscal year
________ 4. Used by auditors to determine which programs will be audited as part of the single audit
________ 5. A monetary item identified by an auditor in an audit finding that generally relates to noncompliance with a law, regulation, or agreement, where the costs are either not supported by adequate documentation or appear unreasonable

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Definitions:

Accounting Profits

Accounting profits refer to the net earnings of a company as calculated by subtracting total expenses from total revenues, using standard accounting principles.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, indicating the profitability of a company beyond basic accounting measures.

Economic Losses

Financial losses that occur when the cost of production exceeds the revenue generated from sales.

Total Output

The total quantity of goods or services produced by a firm or economy in a given period.