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 by consolidating audit activity into one organization-wide audit.
C) Make audit activity legal at the federal level.
D) Allow federal auditors greater access to government entities receiving federal funds.

Question

Quizplus · Accepted Answer

The Single Audit Act of 1984 (amended in 1996) aims to promote the efficient and effective use of audit resources by consolidating audit activity into one organization-wide audit. This act requires nonfederal entities that spend over $750,000 in federal funds in a year to undergo a single audit, which covers both financial and compliance audits. The purpose is to reduce the administrative burden on these entities, and at the same time, to provide the federal government with assurance that the funds are spent in compliance with applicable laws and regulations. The act also requires auditors to report on internal control over financial reporting and on compliance with laws and regulations related to federal funds.

One of the Primary Purposes of the Single Audit Act