Compliance Audit_Session 5

The auditors should evaluate the evidence obtained and determine whether it is _______and _______ to reduce the audit risk at an acceptably low level and to form conclusions that would be able to withstand critical examination.

• A. Numerous and reasonable

• B. Sufficient and appropriate

• C. Just right and good enough

The noncompliance is quantitatively material if:

• A. It is important based on professional judgment

• B. It is significant based on the impact of non-compliance

• C. It equals or exceeds the materiality set

It is a clear written statement of the auditors expressed in a standardized format, either complying or not complying, in all material respects, with the established criteria.

• A. Conclusion

• B. Evidence

• C. Report

The auditors should communicate their initial audit findings through an issuance of ______ to allow the responsible party to investigate the cause of the noncompliance, and provide reasons and justifications.

• A. Audit Report

• B. Audit Observation Memorandum (AOM)

• C. Notice of Disallowance

______ the exit conference with the agency, the auditors should prepare the audit summary documented in the Summary of Audit Observations and Recommendations.

• A. Before

• B. After

• C. During