It is often said that the single audit is "risk based"? Would you agree with that...

It is often said that the single audit is "risk based"? Would you agree with that statement? If so, explain.

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Answer:

Single Audit:

The demonstration or act refers to single audit since it merges various individual audits of non federal entities required for every federal award into single audit.

Purpose for single audit:

To guarantee a recipient of federal funds is in compliance with the federal projects necessities for how the cash can be utilized.

Risk based factors for single audit:

It might become mechanical undertaking

A audit doesn't ensure that all the material errors will be distinguished because of following inherent limitations :-

Test nature of audit .
Audit proof accessible to the auditor is persuasive instead of decisive in nature.
Example :- Certain level of the management might be in the situation to supersede or override controls .
Auditor needs to rely on the books , archives or documents and different records gave by the management which don't give a complete sense of reliability.

ekkarill92 answered 8 months ago

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