Question

The single Audit Act is an important law to the governmental accountant and auditor. Describe the purpose of the Single Audit Act and what types of entities are subject to its provisions.

Answer 1

Solution. Before 1984, any federal funding received by a country from any non-profit organization was recorded separately under different heads while auditing. The Single Audit Act was introduced to set up rules and regulations under which all such funding and contribution were to be recorded under one audit system.

Purpose of the Single Audit Act are enlisted down:

1.With the implementation of Single Audit Act, all non-profit organization funding encompassing federal funding and other country funding will be recorded under one audit regulations which in turn will consume less time in preparation and increase efficiency in recording and preparing such documents for governmental purposes.

2.The implementation of Single Audit Act will ensure fair recording and preparation of financial statements under law and will hold true representation of organization which is receiving such funding, federal award activities, and other such assistance received during auditing period conducted.

Types of entities subject to Single Audit Act provisions are any organization receiving financial assistance from non-profit, federal or other federal governments in form of grants, loan, donations, cooperative agreements, etcetera.

So, we can conclude, the Single Audit Act is an important law to the governmental accountant and auditor.