Question

What is the Single Audit Act? How has this act influenced auditing of governmental agencies? What types of reports and opinions do the auditors provide?

Answer 1

In USA Single Audit, also known as the OMB A-133 audit or 133 audit. It is an audit conducted organisation of a company or organisation whose has used federal assistance of US$ 750,000 million or more. It is a kind of assurance audit to ensure that assistance given to org. are used for the specific purpose only.

The OMB created 14 basic and standard compliance requirements for which recipients must always comply with when receiving and using federal assistance, and provided detailed explanations, discussions, and guidance about them in the OMB Circular A-133 Compliance Supplement.

Its performed annually by an CPA.

The Single Audit requires that a recipient prepare financial statements specifically for the single audit. It also requires that a financial audit be performed on the recipient, which includes the federal assistance operations as well as the non-federal assistance operations.

Reports of single audit covers following -

Comments and opinion on internal control system

Area where internal controls are deficient

It tests compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit.