@3Down1ToGo Let me type out what I consider to be the key notes that Becker didn't do a good job explaining. That should help you.
– A compliance audit is never required for a governmental audit unless the program requires it or if it falls under the Single Audit Act. Keep in mind that if it falls under the Single Audit Act, you only provide an opinion on compliance with each major program, NOT with compliance overall. For every report regardless of Single Audit Act or otherwise, you should indicate the scope of testing and findings of what you did do with compliance.
– You are never required to provide an opinion on internal control (unless the government program calls for it). Just like compliance, only report on the scope of testing and the findings.
– Contrary to a GAAS report on internal control, with a governmental audit, you report BOTH significant deficiencies and material weaknesses. So in a way, it's very similar to COMMUNICATION with management and governance in a regular audit in that you report both (as opposed to a regular integrated audit REPORT where you only report material weaknesses), except that this is a report going out to third party users.
Hope this helps!
.