FYI - Compliance Audits Evaluating the Evidence and Forming an Opinion—Most governmental audit requirements specify that the auditor's opinion on compliance is at the program level (and materiality is usually determined based on the program taken as a whole). 1. The auditor should consider likely questioned costs (not just known questioned costs) and other noncompliance that may not result in questioned costs. 2. The auditor may include a variety of factors in assessing the risk of noncompliance, including: (a) the complexity of the compliance requirements; (b) how long the entity has been subject to those compliance requirements; (c) the degree of judgment involved in compliance; and (d) the entity's compliance in prior years.