Single Audit Resources The Single Audit Act Amendments
The Single Audit Act gives the Office of Management and Budget (OMB) the authority
to develop government-wide guidelines and policy on performing audits to comply
with the Act. The most recent OMB regulation issued for that purpose is Title
2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
It includes uniform cost principles and audit requirements for federal awards
to nonfederal entities and administrative requirements for all federal grants
and cooperative agreements. The previous OMB regulation containing requirements
for single audits was OMB Circular A-133, Audits of States, Local Governments
and Non-Profit Organizations (Circular A-133).
Accessing Key Single Audit Related Information
Here is a reference to key Single Audit Act information:
- The Uniform Guidance codified in Title 2 of CFR, Subtitle A, Chapter
II, Part 200
- OMB Office of Federal Financial Management web site to access compliance
supplements to various additional uniform guidance> https://www.whitehouse.gov/omb/financial_default
- Access Council on Financial Assistance Reform (COFAR) guidance including
FAQs, archived webcasts, and other information> https://cfo.gov/cofar/
OMB Circular A-133 – Major Programs
Various regulators that monitor the quality of single audits are identifying
problems with the auditor's application of the risk-based approach to determining
major programs as required under Circular A-133. The risk-based approach is
designed to focus the Circular A-133 audit on higher risk programs. To assist
you in understanding the risk-based approach, with respect to Circular A-133's
requirements for major program selection, please visit:
- www.aicpa.org/interestareas/governmentalauditquality/resources/singleaudit/ombcirculara133/ombcirculara-133auditrefresher-majorprograms/pages/default.aspx
Understanding the Single Audit Environment
Here is a summary of steps an auditor should undertake to be prepared for conducting
an audit in the Single Audit environment:
- Gain an understanding of the basics of OMB Circular A-133, when it
is applicable, and what it requires of the auditor.
- Understand what the compliance requirements are, how clients can identify
them, and what auditors are required to test.
- Understand the client’s responsibilities for internal control
over compliance, the various elements of COSO, and auditor responsibilities
for understanding and testing client internal control.
- Gain familiarity with the various rules and regulations that must be
complied with and the various reporting requirements for both auditors and clients
to achieve compliance.
- Know what tips there are for clients to get ready for their audits and
steps that can be taken to help ensure a quality audit is obtained.
For additional information, please visit:
http://www.aicpa.org/interestareas/governmentalauditquality/resources/pages/preparingforyoursingleauditconferencecall.aspx
Government Auditing Standards (Yellow Book) Practice Aids and Tools
The AICPA’s Governmental Audit Quality Center (GAQC) web site section
provide links to practice aids and tools that will assist auditors in understanding
the requirements of Government Auditing Standards, issued by the Comptroller
General of the United States (also referred to as the Yellow Book and GAGAS).
Below are some of the highlights of the GAQC publications that can be found
at>
https://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/AuditPracticeToolsAids/Pages/YellowBookAuditToolsandAids.aspx
- 2011 Yellow Book Independence—Nonaudit Services Documentation
Practice Aid
- Peer Review Yellow Book Guidance
- AICPA – Yellow Book (GAGAS) Independence Rules Comparison
- Archived Web Event on the GAQC 2011 Yellow Book Independence Practice
Aid
- Archived Web Event on the 2011 Yellow Book
- Illustrative Yellow Book Audit Reports
- Government Auditing Standards: Guidance on GAGAS Requirements for Continuing
Professional Education
Ethical Requirements and Considerations Under Government Auditing Standards
For an AICPA guide containing a list of quality issues found in its investigations
of government and not-for-profit entities audits, please visit:
http://www.aicpa.org/interestareas/professionalethics/resources/ethicsenforcement/downloadabledocuments/govermentnotforprofitreport.pdf
Yellow Book Independence
The auditor needs to understand and document:
- Management’s ability to oversee non-attest services based on
their requisite skills, knowledge and experience.
- A common understanding with management regarding responsibilities for
non-attest services.
- Significant threats to independence and application of safeguards to
mitigate any identified threats.
Additional information may be found by visiting the AICPA June 2016 Reviewer
Alert at http://www.aicpa.org/InterestAreas/PeerReview/NewsAndPublications/DownloadableDocuments/ReviewerAlert0616.pdf
and look for “Spotlight on Audits Subject to Government Auditing Standards
and Single Audit” on p. 3.