Describe how you, as an auditor, would determine major programs for audit, assuming (a) the local government is not a low-risk auditee, and (b) the local government is a low-risk auditee.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
13-10
A local government has five federal grants. Expenditures amounted to $3,000,000 during the year, as follows:
Type A
HUD grant, new and never audited $900,000.
HUD grant audited last year; no major findings $750,000.
Type B
EPA grant $600,000
Summer Youth Employment grant $675,000
Dept. of Agriculture grant $75,000.
Describe how you, as an auditor, would determine major programs for audit, assuming (a) the local government is not a low-risk auditee, and (b) the local government is a low-risk auditee.
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