[barelystayingsane]

Becker says that you can perform a compliance audit for governments/governmental assistance without having to perform a financial statement audit. Can you then also perform a financial statement audit without performing a compliance audit (assuming you don’t go over the $500k limit of the Single Audit Act)?

Thank you!

[barelystayingsane]

Bump

[barelystayingsane]

Bump

[Jennifer241]

Yes, In Oregon all municipals with over 200,000 are required to send an audit report to the secretary of state. Often times those small of audits do not need a compliance audit because they do not have any federal monies that would require a single audit compliance.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Jennifer241]

Yes, In Oregon all municipals with over 200,000 are required to send an audit report to the secretary of state. Often times those small of audits do not need a compliance audit because they do not have any federal monies that would require a single audit compliance.

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Malissa]

The single audit and a governmental financial audit are two different things. One can be done with-out the other. They are often done together because a lot of the auditing work is similar.

When they are done apart it is often because a small entity ended up with a big grant and while their financials are only required to be audited every third year, they need a single audit for grant compliance in between.

F-81
B-81
R-75
A-waiting...failed twice third time's the charm right?

[Malissa]

The single audit and a governmental financial audit are two different things. One can be done with-out the other. They are often done together because a lot of the auditing work is similar.

When they are done apart it is often because a small entity ended up with a big grant and while their financials are only required to be audited every third year, they need a single audit for grant compliance in between.

F-81
B-81
R-75
A-waiting...failed twice third time's the charm right?

[barelystayingsane]

@Malissa, do you mean a program-specific audit? My understanding from Becker is that a single audit is both a financial statement audit and a compliance audit for major programs (i.e., a program-specific audit) performed together.

[barelystayingsane]

@Malissa, do you mean a program-specific audit? My understanding from Becker is that a single audit is both a financial statement audit and a compliance audit for major programs (i.e., a program-specific audit) performed together.

[Malissa]

https://www.whitehouse.gov/omb/financial_fin_single_audit

First a link form the source. 😉

A single audit often looks like a financial audit, but it will only touch on funds with federal grants. the goal of the single audit is to make sure that federal funds are being spent in accordance with the grant. This will include making sure that matching money is spent on the grant work, that any interest earned on federal funds given in advance are spent properly. The audit covers all expenditures under the audit. This may branch out to auditing internal control, general practices and other areas such as payroll compliance. But the heart of the single audit is on compliance with the grant(s).

An integrated audit is when the auditing agency comes in to do a fund financial statement or CAFR audit as well as the single audit. Often the same procedures are covered, such as vouching payables to insure proper authorization and bid procedures. Thus why it usually happens integrated. Especially because the local governments are paying for both audits and need to have them be as cost effective as possible.

F-81
B-81
R-75
A-waiting...failed twice third time's the charm right?

[Malissa]

https://www.whitehouse.gov/omb/financial_fin_single_audit

First a link form the source. 😉

A single audit often looks like a financial audit, but it will only touch on funds with federal grants. the goal of the single audit is to make sure that federal funds are being spent in accordance with the grant. This will include making sure that matching money is spent on the grant work, that any interest earned on federal funds given in advance are spent properly. The audit covers all expenditures under the audit. This may branch out to auditing internal control, general practices and other areas such as payroll compliance. But the heart of the single audit is on compliance with the grant(s).

An integrated audit is when the auditing agency comes in to do a fund financial statement or CAFR audit as well as the single audit. Often the same procedures are covered, such as vouching payables to insure proper authorization and bid procedures. Thus why it usually happens integrated. Especially because the local governments are paying for both audits and need to have them be as cost effective as possible.

F-81
B-81
R-75
A-waiting...failed twice third time's the charm right?

[barelystayingsane]

I might be getting confused on terminology (program vs. fund vs. entity, etc.). Reading over OMB Circular A-133, it says that a program-specific audit is “an audit of one Federal program,” whereas a single audit is “an audit which includes both the entity's financial statements and the Federal awards.” Your definition of an integrated audit sounds more like the OMB definition of a single audit to me, but again, I could be getting confused on the terminology.

[barelystayingsane]

I might be getting confused on terminology (program vs. fund vs. entity, etc.). Reading over OMB Circular A-133, it says that a program-specific audit is “an audit of one Federal program,” whereas a single audit is “an audit which includes both the entity's financial statements and the Federal awards.” Your definition of an integrated audit sounds more like the OMB definition of a single audit to me, but again, I could be getting confused on the terminology.

[Malissa]

Go with the definitions from the OMB circular. I forget that textbook and real-life don't always match. 😉

F-81
B-81
R-75
A-waiting...failed twice third time's the charm right?

[Malissa]

Go with the definitions from the OMB circular. I forget that textbook and real-life don't always match. 😉

F-81
B-81
R-75
A-waiting...failed twice third time's the charm right?

[barelystayingsane]

I've been trying to find out more about the integrated audit, but the only integrated audit I can find is that which is required by SOX (expressing an opinion on both the financial statements and internal control). Do you know of a website where they talk about the integrated audit for a governmental audit?

[Author]

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