Which of the Following Is True Regarding the Single Audit

question 55

Multiple Choice

Which of the following is true regarding the Single Audit Act and its amendments?

• A) An auditor is expected to express an opinion on "major programs," which are chosen based on size.
• B) An auditor is required to select all "Type A" programs as major programs.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Special Order

A customer request for a product or service that is not generally available or outside the business’s normal operations, often requiring special pricing or production considerations.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal conditions.

Activity-Based System

A method in accounting that allocates costs to specific activities based on their use of resources, aimed at providing more accurate cost information.