What it is
A single audit is a financial statement audit plus a compliance audit of the federal programs the auditee ran. The engagement letter has to cover three sets of requirements at once: auditing standards, Government Auditing Standards and the Uniform Guidance at 2 CFR 200, Subpart F. Missing the auditee’s own duties, such as the corrective action plan and the data collection form, is a common gap.
This template sets out the audit objectives and scope, the auditor responsibilities (major program determination, internal control over compliance, reports), the management responsibilities (SEFA, award identification, subrecipient monitoring, filing) and the independence point on nonaudit services under GAGAS.
When to use it
- An entity expended federal awards at or above the single audit threshold in 2 CFR 200.501 in its fiscal year and needs an auditor.
- Renewing the annual letter after a change in management, programs or the Uniform Guidance thresholds.
- When you also prepare the financial statements, the SEFA or the data collection form, and need the nonaudit service terms documented.
What’s inside
- Objective and scope: financial statements, SEFA in relation to the financial statements, and compliance for major programs
- Auditor responsibilities: major program determination, internal control over compliance, GAGAS and Uniform Guidance reports
- Management responsibilities, from SEFA preparation to subrecipient monitoring and corrective action plans
- Data collection form and reporting package, with the submission deadline
- Nonaudit services under GAGAS, fees, records access and signature blocks
Standard cited
This template follows AU-C 210 / AU-C 935 / GAGAS / 2 CFR 200. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 210 explained, AU-C 935 explained.
Questions
What standards govern a single audit?
The financial statement audit follows GAAS and the financial audit standards of Government Auditing Standards. The compliance audit follows the Uniform Guidance, 2 CFR 200, Subpart F, together with the OMB Compliance Supplement for the major programs.
Who submits the reporting package?
The auditee is responsible for submitting the data collection form and reporting package to the Federal Audit Clearinghouse, by the earlier of 30 calendar days after it receives the auditor’s reports or nine months after the end of the audit period (2 CFR 200.512(a)). A senior-level representative of the auditee certifies the data collection form, and the auditor completes and certifies its own portion (200.512(b)).
Why does the letter mention peer review?
Government Auditing Standards require firms that perform these audits to have a peer review, and the Uniform Guidance has the auditee request a copy of the audit organization’s peer review report when procuring audit services. The letter flags both so the firm can state its rating.
Does the letter state the Type A and Type B thresholds?
No. The auditor works them out from the auditee’s total federal awards expended, using the table in 2 CFR 200.518(b)(1). Under the current text, an auditee that expended $1,000,000 or more but not more than $34 million has a Type A threshold of $1,000,000. Audits of earlier fiscal years use the figures in the version of the Uniform Guidance that applied to them.
Related templates
- Audit Engagement Letter (AU-C 210)
- Management Representation Letter (AU-C 580)
- Communication With Those Charged With Governance (AU-C 260)
Last updated 11/05/2026. All free templates.