Which of the Following Statements Concerning the Single Audit Act

question 46

Multiple Choice

Which of the following statements concerning the Single Audit Act of 1984 (with 1996 amendments) is correct?

• A) Only those entities receiving over $750,000 a year in federal financial assistance are required to have a single audit.
• B) Those entities expending under $750,000 a year in federal awards may be exempt from single audit requirements.
• C) The Single Audit Act only applies if an entity has high risk programs.
• D) The single audit is optional for all entities receiving federal awards.

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Definitions:

Uncertain Tax Positions

Tax positions taken in a filed tax return that may be challenged by the taxation authorities and which may have to be adjusted in the future.

Technical Merits

The inherent value or quality of a project, system, or process based on its technical specifications, efficiency, and effectiveness.

Statutory Rate

The legally enforced tax rate set by government legislation.

Differential Tax Rates

Different rates of taxation applied to different levels of income, types of taxpayers, or types of activities, to achieve various economic or social objectives.