Which of the following statements concerning the Single Audit Act of 1984 (with 1996 Amendments)is correct?
A) Only those entities receiving over $500,000 a year in federal financial assistance are required to have a single audit.
B) Those entities expending under $500,000 a year in federal awards are exempt from single audit requirements.
C) The Single Audit Act only applies if an entity has high risk programs.
D) The single audit is optional for all entities receiving federal awards.

Question

Quizplus · Accepted Answer

The Single Audit Act of 1984 (with 1996 Amendments) dictates that entities expending under $750,000 per year in federal awards are exempt from single audit requirements. Therefore, statement B is correct. Statement A is incorrect because the threshold for requiring a single audit is $750,000, not $500,000. Statement C is incorrect because the Single Audit Act requires audits to be performed on all federal programs administered by an entity, not just high-risk programs. Statement D is incorrect because the Single Audit Act mandates that entities expending the specified amount of federal funds must have a single audit performed.

Which of the Following Statements Concerning the Single Audit Act