Single audit: definition and audit meaning

Definition

A single audit is one engagement covering the entity's financial statements and its compliance with federal program requirements. Under 2 CFR 200.501(a), a nonfederal entity that expends $1,000,000 or more in federal awards during its fiscal year must have a single audit, or in limited cases a program-specific audit. The financial statement audit follows GAGAS. The auditor also tests internal control over compliance and compliance itself for programs selected as major.

Why it matters in an audit or review

Single audits shape the engagement scope, the staffing, and the deliverables. The reporting package includes the financial statements, the schedule of expenditures of federal awards, the auditor's reports on the statements, on internal control and compliance, the schedule of findings and questioned costs, and a corrective action plan. The package goes to the Federal Audit Clearinghouse, generally within the earlier of 30 days after the auditor's report or nine months after year end.

Example

Illustrative: a nonprofit expends $640,000 on one federal grant and $520,000 on another, $1,160,000 in total. The $1,000,000 threshold is met, so a single audit is required even though neither grant alone reaches it.

Common mistakes

Counting only awards received rather than expended, or leaving out pass-through awards.

FAQ

Is the threshold per award or total?

Total federal awards expended in the fiscal year. Individual awards are not tested against it.

Sources

2 CFR 200.501, Audit requirements: https://www.ecfr.gov/current/title-2/section-200.501
2 CFR 200.512, Report submission: https://www.ecfr.gov/current/title-2/section-200.512
2 CFR 200.514, Scope of audit
OMB, Guidance for Federal Financial Assistance, 89 FR 30046 (April 22, 2024), effective October 1, 2024: https://www.federalregister.gov/d/2024-07496
GAO, Government Auditing Standards, 2024 Revision (Yellow Book), GAO-24-106786: https://www.gao.gov/yellowbook

Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error

Related terms

Uniform Guidance (2 CFR 200)

The Uniform Guidance is OMB's consolidated rulebook in 2 CFR Part 200 for administering federal awards, covering allowable costs, procurement and subrecipient oversight, and the audit requirements of Subpart F.

Type A and Type B programs

In a single audit, Type A programs exceed a size threshold based on total federal awards expended and all others are Type B; the auditor selects major programs from both using a risk-based approach.

SEFA

The SEFA, or schedule of expenditures of federal awards, is the management-prepared schedule listing each federal program's expenditures, which is audited in relation to the financial statements in a single audit.

Schedule of findings and questioned costs

The schedule of findings and questioned costs is the single audit report section that summarizes auditor results and lists financial statement findings and federal award findings, including questioned costs, as 2 CFR 200.515 requires.

Join the CORAA waitlist

CORAA AI drafts audit working papers from your client’s QuickBooks books and does the first pass: lead schedules, tie-out, memos, draft notes and letters. CORAA Network reviewers clear every finding. Your firm reviews and signs.

First audit free, so you can judge the quality on a real file

Flat fee by entity size; messy books included

We work only with CPA firms, never their clients

See how it works →

Single audit