The Following Are Key Terms in Chapter 11 That Relate

question 65

Short Answer

The following are key terms in Chapter 11 that relate to single audits:
A. Risk-based approach
B. Single audit
C. Questioned cost
D. Material weakness
E. Oversight agency
F. Major programs
G. Cognizant agency
H. Significant deficiency
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.
_____ 1. The federal agency that makes the predominant amount of direct funding to the nonfederal entity receiving less than $50 million in federal awards
_____ 2. A deficiency in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented,or detected and corrected on a timely basis
_____ 3. An audit prescribed by federal law for state and local governments and not-for-profit organizations that expend more than $750,000 in a fiscal year
_____ 4. Used by auditors to determine which programs will be audited as part of the single audit
_____ 5. A monetary item identified by an auditor in an audit finding that generally relates to noncompliance with a law,regulation,or agreement,where the costs are either not supported by adequate documentation or appear unreasonable

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Definitions:

Reduction of the Principal

The process of decreasing the initial amount of money borrowed or invested over time.

10th Payment

The tenth installment of a series of payments in a loan or mortgage.

Compounded Semi-Annually

Interest on an amount that is calculated twice a year and added to the principal for future interest calculations.

Amortized

The process of paying off debt through regular payments over a set period, where the payments cover both principal and interest.