An auditor's report on additional schedules under the Single Audit Act must indicate what?

The auditor's report on additional schedules under the Single Audit Act must indicate whether the schedule of expenditures is fairly stated. This requirement is fundamental because the purpose of the Single Audit is to ensure that federal funds are used properly and that expenditures are accurately reported. An assessment of whether the schedule of expenditures is fairly stated provides assurance to stakeholders that the data presented is reliable and meets the necessary accounting standards.

The auditor's evaluation focuses on the fairness of the presentation in relation to the applicable financial reporting framework. By affirming that the schedule is fairly stated, the auditor helps maintain transparency and accountability, which is critical in the context of federal funding and compliance with applicable laws and regulations.

In contrast, the other options do not directly align with the core requirements for an auditor's report under the Single Audit Act. For instance, the involvement of the internal auditor or specific compliance issues do not serve as a basis for the auditor's primary assertion regarding the fairness of the financial statements. Furthermore, while the auditor may report on findings related to federal awards, the emphasis in this context is strictly on the fairness of the presented schedules.