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A single audit is a term used in reference to an
entity-wide audit consisting of two main parts: an audit
of the basic financial statements and an audit of the
entity’s major federal award programs. The audit of
the major programs includes (a) gaining an understanding
of and testing the internal controls and (b) testing
compliance with compliance requirements over the
programs. In accordance with the concept, one auditor
integrates the various programs’ internal control and
compliance auditing requirements with an audit of the
entity’s basic financial statements.
However, not all state and local
governments and nonprofit organizations that receive
federal awards are subject to the single audit
requirements. Organizations that expend less than
$300,000 in federal awards during a year are exempt from
the single audit requirement for that year. Also the
Single Audit Act Amendments of 1996 gives the Director
of Office and Management and Budget (OMB) the authority
to change the $300,000 threshold every two years (except
the amount can never be reduced below $300,000).
Government Auditing Standards
As
a partial response to the multitude of program audit
guides, the U.S. General Accounting Office (GAO) issued
the Government Accounting Standards in an attempt
to bring uniformity to audits of governmental
organizations, programs, activities, and certain
entities (including nonprofit organizations) receiving
government assistance. These standards relate to scope
and quality of audit efforts and to the characteristics
of a professional and meaningful audit report. They
address the concerns of public officials, legislators,
and the general public about whether governmental funds
are handled properly and in compliance with existing
laws and whether governmental programs are being
conducted efficiently, effectively, and economically.
Other
Audits
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the subjects below to learn more about other specific
audits, and related topics:
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