Which of the Following Is Not True Regarding the Single

question 32

Multiple Choice

Which of the following is not true regarding the Single Audit Act and its amendments?

• A) Governments and not-for-profit organizations that exceed $50 million in federal awards are normally assigned a cognizant agency to provide guidance.
• B) Smaller governments report to oversight agencies, typically the agency providing more funding than any other agency.
• C) The auditor is not required to test internal controls to gain an understanding of internal controls for use in selecting programs for audit.
• D) All of the above are true.

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Definitions:

Factory Overhead

Costs associated with the operation of a manufacturing plant that are not directly tied to individual products, such as maintenance.

Direct Labor

The compensation, such as salaries or wages, given to workers who are directly engaged in producing goods or services.

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and overhead.

Prime Costs

The sum of direct materials cost and direct labor cost, representing the primary costs involved in producing a product.