The Single Audit Act Intends That Auditors Conducting Regular Financial

question 109

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 & B
• D) None of the above

---

Definitions:

Finance Lease

A type of lease in which the lessee effectively takes on all the risks and rewards of ownership, though legally the asset remains owned by the lessor.

Lessors

Entities that lease an asset to a lessee, typically retaining ownership of the asset for the duration of the lease agreement.

Market Rent

The average rent that similar properties in the same area are fetching on the open market; used as a benchmark in lease agreements.

Fair Value

The proceeds from selling an asset or the outlay to relocate a liability in a planned interaction among market stakeholders on the benchmark date.