The Single Audit Requirement Applies To

question 51

Multiple Choice

The single audit requirement applies to:

• A) All audits of state and local government reporting entities.
• B) Financial audits of all not-for-profit entities.
• C) Most audits of state and local governments expending federal grant funds.
• D) Only those governments and not-for-profit entities that are audited by a federal audit agency.

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Definitions:

Service-sponsored Retail System

A retail network established by a service provider to sell or distribute its services directly to consumers.

Administered Cooperative System

A system where a central agency coordinates the activities of a group of cooperative entities, ensuring efficiency and uniformity in operations.

Franchising

A business practice in which a company allows another operator to trade under its brand in return for a fee or license.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.