Under a Single Audit

question 32

Multiple Choice

Under a single audit:

• A) An annual audit must be performed encompassing the nonfederal entity's financial statements and schedule of expenditures of federal awards.
• B) The audit must be conducted by an independent auditor in accordance with generally accepted government auditing standards (GAGAS) and cover the operations of the entire nonfederal entity.
• C) For each major program, the auditor must obtain an understanding of the internal controls pertaining to the compliance requirements for the program, assess control risk, and perform tests of controls, unless the controls are deemed to be ineffective.
• D) All of the above statements regarding a single audit are true.

Appreciate the significance of internal reports in managerial decision-making and their characteristics.

Understand the differences between managerial and financial accounting in terms of purpose, audience, and report content.

Recognize planning as a key function of management that involves setting objectives for performance.

Understand the concept of GDP and real GDP, including their calculation and interpretation.

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Definitions:

Partnership

A legal form of business operation between two or more individuals who share management and profits.

UPA

Uniform Partnership Act, which governs the operation of partnerships within the United States.

Legal Entity

A legal entity is any company or organization that has legal rights and responsibilities, including the ability to enter into contracts, sue, and be sued.

Unlimited Liability

A legal obligation where an individual's responsibility for debts extends beyond what was invested into a business, potentially affecting personal assets.