The Single Audit Act Intends That Auditors Conducting Regular Financial

question 27

Multiple Choice

The Single Audit Act intends that auditors conducting regular financial audits of state and local governments and not-for-profits organizations provide assurance to the federal government that:

• A) Federal funds have been expended in accordance with laws and regulations.
• B) Federal funds are protected through a system of internal controls and sound financial management practices.
• C) Both A and B above.
• D) Neither A nor B above.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid out.

Sales Adjusted

The net sales figure after deductions such as returns, allowances, and discounts have been accounted for.

Cash Basis

An accounting method that recognizes revenues and expenses only when cash is exchanged.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, regardless of when the transactions occurred.