Which of the Following Is Not True Regarding the Single

question 36

Multiple Choice

Which of the following is not true regarding the Single Audit Act and its amendments?

• A) Governments and not-for-profit organizations that exceed $50 million in federal awards are normally assigned a cognizant agency to provide guidance.
• B) Smaller entities report to oversight agencies, typically the agency providing more funding than any other agency.
• C) The auditor is not required to test internal controls to gain an understanding of internal controls.
• D) All of the above are true.

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Definitions:

Default

The failure to fulfill a legal obligation, such as not making a scheduled payment on a loan.

Public Restrictions

Legal limitations placed by government entities on how properties can be used, often to designate zoning and land use.

Private Restrictions

Limitations imposed by private parties rather than governmental entities on the use of property, often found in deeds or homeowners' association rules.

Land

The solid part of the earth's surface including the ground and all natural resources and features.