What does single audit mean on the CPA exam?
Single audit. The combined financial statement and federal compliance audit required of an entity spending above a threshold in federal awards.
Defined against 2 CFR 200.501.
Which CPA exam sections use single audit?
Single audit appears in the ISC section of the CPA exam.
Related terms
- internal audit: An in-house function that evaluates controls and processes and reports to those charged with governance.
- analytical procedures: Evaluations of financial information by studying plausible relationships among financial and nonfinancial data.
- risk assessment procedures: The audit procedures designed and performed to identify and assess the risks of material misstatement at the financial statement and assertion levels.
- audit committee: A subcommittee of the board of directors that oversees financial reporting and the external audit.
- those charged with governance: The people responsible for overseeing the entity's strategic direction and its accountability, including the financial reporting process.
- kiddie tax: Taxing a child's unearned income above a threshold at the parents' rate, so that income cannot be shifted to a lower bracket by gift.