What is the primary purpose of the Single Audit Act?

The primary purpose of the Single Audit Act is to ensure comprehensive audits for federal funds. This legislation was established to streamline the audit process for organizations that receive federal financial assistance. By implementing a single audit requirement, the act allows for one audit to cover all federal programs instead of requiring multiple audits for each program. This not only promotes accountability and compliance with federal regulations but also provides a clear and standardized framework for examining how federal funds are used by state and local governments, non-profits, and other entities. Consequently, this helps to identify areas of risk, enhances transparency, and ensures that resources are effectively managed.