The Single Audit Requirement Applies to

question 33

Multiple Choice

The single audit requirement applies to

• A) All audits of state and local government reporting entities.
• B) Audits to determine efficiency and economy.
• C) Audits following the Single Audit Act of 1984 (with 1996 Amendments)and the revised OMB Circular A-133.
• D) Financial and performance audits,and attestation engagements.

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Definitions:

Controllable Margin

Controllable Margin refers to the portion of profit or income that can be directly influenced by managerial decisions, excluding fixed costs and uncontrollable factors.

Investment Center

A division or unit within an organization that has control over its revenue, expenses, and invested capital, and is responsible for its profit and investment decisions.

Budgeted Selling Expenses

Estimated costs related to the sale of a company's products or services, planned for a future period.

Flexible Budget

A budget which is responsive and adjusts based on fluctuations in levels of volume or activity.