This course is a mix and match program involving applying cost circulars, allocating costs in not-for-profit organizations and substantive analytical procedures. Indirect costs represent the expenses of doing business that are not readily identified with a particular grant, contract, project function or activity, but are necessary for the general operation of the organization. OMB circulars set standards for financial management, and include written procedures for determining the reasonableness and permissibility of costs with the condition of the award. Auditors are required to perform substantive tests of all significant account balances and classes of transactions. Since sample sizes for tests of details can be very large, especially for statement of activity accounts, many auditors are turning to substantive analytical procedures.