A Local Government Has Four Federal Grants $\text {Type A}$

Essay

A local government has four federal grants. Expenditures during the year ended June 30, 2017, are below:
$\text {Type A}$
$\begin{array}{llcc} \text { HHS grant, new this year and never audited } & \$880,000\\ \text { HHS grant, audited last year, no major findings } & 770,000\end{array}$

$\text {Type B}$
$\begin{array}{llcc} \text { Department of Transportation} & 65,000 \\ \text { Department of Agriculture} &\underline{485,000}\\ \text {Total all funds } &\$2,200,000\\\end{array}$

A. Which grants would the auditor be required to audit, assuming the government is not found to be low risk?
B. Which grants would the auditor be required to audit, assuming the government is found to be low risk?