CGAP Public Sector Compliance and Regulations

Question 1

Which federal law requires annual single audits for non-federal entities expending $750,000 or more in federal awards?

Accepted Answer

Single Audit Act as amended, implemented via 2 CFR Part 200

Answer

Inspector General Act

Answer

Federal Acquisition Regulation

Answer

Government Management Reform Act

Question 2

What is a 'major program' in the context of a Single Audit?

Accepted Answer

A federal program selected for compliance testing based on risk assessment criteria in 2 CFR Part 200

Answer

Any federal program that received over $1 million in funding

Answer

All programs listed in the Schedule of Expenditures of Federal Awards

Answer

Programs designated as high-risk by the awarding agency

Question 3

In the Yellow Book (GAGAS), which type of finding must auditors report when they identify non-compliance that is material to a major program?

Accepted Answer

Material weakness in internal control over compliance

Answer

Significant deficiency

Answer

Reportable condition

Answer

Audit exception

Question 4

What does the Schedule of Expenditures of Federal Awards (SEFA) report?

Accepted Answer

All federal awards expended by a non-federal entity during the audit period

Answer

Federal agency spending on domestic programs

Answer

Grant revenue received but not yet spent

Answer

Performance metrics for federal grant programs

Question 5

Under the Hatch Act, what primary restriction applies to most federal employees?

Accepted Answer

They may not engage in partisan political activity while on duty or in federal facilities

Answer

They may not accept outside employment

Answer

They may not hold elected office at any level

Answer

They may not contribute to political campaigns

Question 6

Which government-wide regulation governs the procurement of goods and services by federal agencies?

Accepted Answer

Federal Acquisition Regulation (FAR)

Answer

2 CFR Part 200

Answer

OMB Circular A-123

Answer

Government Accountability Standards (Yellow Book)