Single Audits under the Uniform Guidance receiving federal grants
A single audit is an entity-wide audit performed on entities that expend more than $750,000 or more annually in federal awards. A single audit consists of two main parts:
Audit of the basic financial statements
- Audit of the major federal award programs
The audit of the major projects includes:
- Gaining an understanding of and testing the internal controls
- Testing compliance with compliance requirements over the programs
As part of a single audit, the auditor is required to assume certain testing and reporting responsibilities beyond those of the audit of the financial statements in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. The additional responsibilities focus on compliance with laws and regulations applicable to federal awards and on the internal controls used in administering federal awards.