A recent single audit report for the County of Alameda, California, contains the following: “I. Summary of Auditor’s Results.” Based on the content of this chapter, information contained in the AICPA Website ( and these excerpts from the county’s Single Audit Report, analyze and respond briefly to the following questions.
Part 1: Financial Statement Audit (GAGAS). Refer to items 1–3 in the county’s Schedule of Findings and Questioned Costs that follows:
a. Which of these is based primarily on the AICPA audit standards? The GAO auditing standards?
b. What are significant deficiencies in internal controls? What are material weaknesses?
c. How could the auditor properly render an unqualified opinion on the financial statements if there are material weaknesses in internal controls over financial reporting, significant deficiencies and material weaknesses in internal control over major programs, and several qualified opinions on major program compliance?
Part 2: Single Audit (OMB Circular A-133). Refer to items 4–9.
d. Explain the focus difference(s) between the item 2 and item 4 reports on internal control.
e. Explain the focus difference(s) between item 3 and item 5.
f. How can a single auditor’s report contain both qualified and unqualified opinions? Explain.
g. What does the term “cluster” mean in item 7?
h. Item 9 states that the auditee is not a low-risk auditee. Explain why the county might not qualify as a low-risk auditee.
Schedule of Findings and Questioned Costs
Year ended June 30, 20X3
I. Summary of Auditors’ Results
1. The type of report issued on the basic financial statements: Unqualified Opinion.
2. Significant deficiencies in internal control over financial reporting were disclosed by the audit of the basic financial statements: yes. Material weaknesses: yes
3. Noncompliance that is material to the basic financial statements: No
4. Significant deficiencies in internal control over major programs: yes.
Material weaknesses: yes
5. The type of report issued on compliance for major programs: Unqualified, except for 10.551, 10.561, 84.027, 93.558, and 93.959, which were qualified
6. Any audit findings that are required to be reported under Section 510(a) of OMB Circular A-133: yes
7. Major programs:

8. Dollar threshold used to distinguish between Type A and B programs: $3,000,000
9. Auditee qualified as a low-risk auditee under Section 530 of OMB Circular A-133:No

  • CreatedOctober 25, 2014
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