An auditor is performing a 'Single Audit'. The auditor identifies $20,000 of questioned costs in a major program. The total expenditures for that program are $5,000,000. The threshold for reporting questioned costs is $25,000. What is the auditor's reporting responsibility?

Answer options:

The auditor must report the questioned costs because they exceed $10,000.

The auditor is not required to report the questioned costs in the Schedule of Findings and Questioned Costs.

The auditor must extrapolate the error to the population and report the projected error.

The auditor must report it because any noncompliance is reportable.

How to approach this question

Memorize the Single Audit Questioned Cost Threshold: $25,000.

B.The auditor is not required to report the questioned costs in the Schedule of Findings and Questioned Costs.✓ Correct

The auditor is not required to report the questioned costs in the Schedule of Findings and Questioned Costs.

Under the Uniform Guidance, the auditor must report known questioned costs greater than $25,000.

Using old thresholds ($10k) or assuming zero tolerance.

78 questions · hints · full answers · grading