One of the Primary Purposes of the Single Audit Act

question 56

Multiple Choice

One of the primary purposes of the Single Audit Act of 1984 (amended in 1996) is to:

• A) Detect fraud, waste and abuse in government entities.
• B) Promote the efficient and effective use of audit resources.
• C) Make audit activity legal at the federal level.
• D) Allow federal auditors greater access to government entities receiving federal funds.

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Definitions:

Efficiency Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called deadweight loss.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Actual Production

The quantity of goods or services produced by a firm, industry, or economy within a specific period, factual and not estimated.

Consumer Surplus

The variance between what consumers are ready and capable of spending on a product or service and the actual sum they end up paying.