Which of the following statements concerning the Single Audit Act of 1984 (with 1996 Amendments)is correct?
A) Only those entities receiving over $750,000 a year in federal financial assistance are required to have a single audit.
B) Those entities expending under $750,000 a year in federal awards may be 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) requires entities expending over $750,000 a year in federal awards to have a single audit. However, those entities expending under $750,000 a year in federal awards may be exempt from single audit requirements, unless they have high-risk programs. Therefore, statement B is correct. Statement A is incorrect because the threshold is $750,000, not $500,000. Statement C is incorrect because the act applies to all entities meeting the expenditure threshold, not just those with high-risk programs. Statement D is incorrect because the act requires single audits for entities meeting the expenditure threshold, it is not optional.

Which of the Following Statements Concerning the Single Audit Act