Assuming an Auditee Is Considered Low-Risk, the Auditor Is Required

question 158

True/False

Assuming an auditee is considered low-risk, the auditor is required to express an opinion on compliance on major programs, which must add up to 50 percent of federal funds expended by the auditee.

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Definitions:

Financial Year End

Financial year end is the completion of a one-year, or 12-month, accounting period; the date when companies must finalize their financial statements and report their financial performance.

Reasonable Period

A span of time that is considered fair and appropriate in a given context, especially in legal and contractual situations.

Duty To Obey

A legal or moral obligation to follow the laws or commands of a given authority.

Credit Worthiness

An assessment of a borrower's ability to repay debts based on their financial history, credit score, and other factors indicating financial stability.