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Single Audit Low-Risk Auditee Test (2 CFR 200.520)

What do these figures come to once the work is shown?

Checks each low-risk auditee criterion for the two preceding audit periods, including the 5 percent questioned cost test, and gives the 20 or 40 percent coverage rule.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Low-risk auditee
Yes
Questioned costs as a share of the Type A program
1.62%
Fails above 5 percent
Drawn to one scale
Questioned costs as a share of the Type A program1.62%
Major program coverage required20.00%
All results
MeasureResult
Low-risk auditeeYes
Criteria not metNone
Questioned costs as a share of the Type A program
Fails above 5 percent
1.62%
Major program coverage required
Share of total federal awards expended, 2 CFR 200.518(f)
20.00%
How this was worked out
Work shownrecomputed as you type
Low-risk only if every condition in 200.520(a) to (e) is met for each of the two preceding audit periods
(e)(3) fails when known or likely questioned costs exceed 5% of federal awards expended for a Type A program
Low-risk: major programs must cover at least 20% of total federal awards expended; otherwise 40%

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Low-risk only if every condition in 200.520(a) to (e) is met for each of the two preceding audit periods
  • (e)(3) fails when known or likely questioned costs exceed 5% of federal awards expended for a Type A program
  • Low-risk: major programs must cover at least 20% of total federal awards expended; otherwise 40%

How it works

Under 2 CFR 200.520 an auditee is low-risk, and eligible for reduced coverage, only if for each of the two preceding audit periods: single audits were performed annually and submitted to the FAC on time; the financial statement opinion and the SEFA in-relation-to opinion were unmodified; no material weaknesses were identified under GAGAS; no substantial doubt about going concern was reported; and no Type A program had material weaknesses, a modified major program opinion, or known or likely questioned costs above 5 percent of its expenditures.

Answer each question for both periods together: if either period fails, answer no. For (e)(3), enter the Type A program with the highest ratio of questioned costs to expenditures across the two periods. Under 200.518(f) a low-risk auditee needs major programs covering 20 percent of total federal awards expended instead of 40 percent.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Does a biennial audit ever qualify?

No. Section 200.520(a) states that an entity with biennial audits does not qualify as a low-risk auditee.

Do findings in Type B programs count?

Criterion (e) looks at programs in the periods in which they were classified as Type A programs.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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