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This article applies to:

  • Product: SMART Single Audit

Determine if an entity is a low-risk auditee

Determining if in entity is a low-risk auditee makes them eligible for a lower threshold for testing compared to Major Programs. Major programs are federal programs that, in the aggregate, cover 40% of total federal awards expended. Low-risk auditees' only cover 20% of total federal awards expended, possibly identifying fewer major programs.
According to Office of Management and Budget, this determination is necessary for preparing a summary of the auditor's results and for answering this question on the Data Collection Form.
  1. Add a Federal Award to the engagement.
  2. From the Federal Award Summary, select
    Major Program Determination
     from the dropdown, then
    Determine Low-risk auditee
    .
  3. Answer each question on the screen Yes or No.
  4. Continue to answer every question on the screen until one of the following appear:
    1. The entity is a low-risk auditee.
    2. The entity is NOT a low-risk auditee.
  5. After the determination has been made select
    Next
     to identify major programs.