Under the Single Audit Act, the auditor should report on compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements. This report should also express or disclaim an opinion on whether the auditee complied with laws, etc., that could have a direct and material effect on each major program. In$$accordance with the act and OMB Audit Requirements for Federal Awards $(2$ CFR $200)$ Compliance Supplement, which contains policies, procedures, and guidelines to implement the act, the auditor