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Single Audit

Complete a Single Audit engagement

When creating and completing a Single Audit engagement, you'll need to enter the federal awards, determine if the entity is a low-risk auditee, identify major programs, and review and modify compliance programs.

Add federal awards to a Single Audit engagement

When planning Single Audits in Guided Assurance, you can enter Federal Award information at either the Program level or the Individual Grant level. Awards you add will automatically be in the Identify Major Programs section.
Do the following to add an award:
  1. Open your Single Audit engagement and go to the
    Workpapers
     tab.
  2. Expand the
    Single Audit
     folder and open
    CX-1.5: Single Audit and Major Program Determination worksheet
    .
  3. Select
    Add
     in the Federal Awards section.
  4. Select a government program from the dropdown. Based on your selection, some fields will populate automatically.
    • Select
      Add an unlisted program
       to add a new entry to this listing.
    note
    The dropdown contains more than 2,000 U.S. Government programs that are available on SAM.gov and are updated periodically. Only about 250 of these programs are specifically addressed in the OMB Compliance Supplement. The rest use a standard program from the Compliance Supplement for government programs that aren't specifically addressed in the Compliance Supplement with instructions on how you should tailor it.
  5. Select a date for the last year this program was audited as a major program. Leave blank if never or unknown.
  6. Mark the
    Loan or Loan Guarantee Program
     checkbox, if applicable.
  7. Mark the
    Research and Development Award
     checkbox, if applicable.
  8. Mark the
    The auditee passes funds through to a subrecipient for this program (is a pass-through entity)
     checkbox, if applicable.
  9. Select
    Next
    .
  10. Select either
    Direct
     or
    Indirect
     from the dropdown and complete the monetary fields.
  11. Select
    Add Row
     to enter indirect awards from multiple pass-through entities.
  12. Select
    Done
     or
    Save and add another
    .
The criteria for mandating a single audit are total awards expended equaling or exceeding $750,000.

Determine if an entity is a low-risk auditee

Once you've entered federal awards in your Single Audit engagement, you'll determine if the entity is a low-risk auditee. A low-risk auditee is eligible for a lower threshold for testing Major Programs. Major programs are federal programs that, in the aggregate, require testing 40% of total federal awards expended. If you meet the criteria for a low-risk auditee, you're only required to cover 20%. This can possibly result in classifying fewer programs as major programs.
According to the Office of Management and Budget, this determination is necessary for preparing a summary of the auditor's results and for answering this question on the Data Collection Form.
remember
Before you can determine if an entity is low-risk, you'll need to add 1 or more Federal Award to the engagement.
  1. In the engagement, expand the
    Single Audit
     folder and open
    CX-1.5: Single Audit and Major Program Determination worksheet
    .
  2. Select
    Determine low-risk auditee
    .
  3. Answer each question on the screen
    Yes
     or
    No
    .
  4. Continue to answer every question on the screen until 1 of the following shows:
    • This auditee is low-risk.
    • This auditee is not low-risk.
  5. After the determination has been made, select
    Next
     to identify major programs.

Identify major programs in a single audit

When completing a Single Audit engagement, you'll need to identify major programs. After you enter federal awards and determine if the entity is a low-risk auditee, you can identify major programs.
  1. Open the engagement and go to the
    Workpapers
     tab.
  2. Expand the
    Single Audit
     folder and open
    CX-1.5: Single Audit and Major Program Determination worksheet
    .
  3. Select
    Major Program Determination: Assess risk
    .
    This screen is split between Type A and Type B programs. There's also a banner that lets you view your total expenditures, Type A threshold, and a count of how many Type B programs you need to identify as high risk.
  4. On the
    Type A programs
     tab, select
    Assess
     to perform a risk assessment for each Type A program.
    1. Answer all of the questions for each program.
    2. Use the
      Program or cluster to assess
       dropdown to go to the next Type A program to assess.
    3. Once you've assessed all Type A programs, select
      Return to all programs
       where you can review what programs are considered low-risk or not low-risk.
    Once you've completed risk assessments for all Type A programs, Guided Assurance will create CX-1.6 forms in Engagement Manager as necessary.
  5. Select the
    Type B programs
     tab, then select
    Assess
     to perform a risk assessment for each Type B program.
    1. Answer all of the questions for each program.
    2. Use the
      Program or cluster to assess
       dropdown to go to the next Type B program to assess.
    3. Once you've assessed all Type B programs, select
      Return to all programs
       where you can review what programs are considered high or not high-risk.
    Once you've completed risk assessments for all Type B programs, Guided Assurance will create CX-1.7 forms in Engagement Manager as necessary.
  6. Select
    Next
     or
    Major program determination: Assess coverage
    .
  7. Use the
    Add Major Program
     column to designate it as major. You'll need to do this if a Federal Agency requests you audit a program as a major program and it isn't marked.
  8. Use the
    Award expenditures identified as major programs
     progress bar to make sure you meet the coverage threshold. If the progress bar isn't complete, you'll need to mark more programs as major programs to meet the minimum coverage.
  9. Select
    Next
     to review and modify compliance programs.

Review and modify compliance programs

After you enter Federal Awards, determined a programs risk level, and identified major programs, you'll need to review and modify compliance programs.
  1. Open your Single Audit engagement and go to the
    Workpapers
     tab.
  2. Expand the
    Single Audit
     folder and open
    CX-1.5: Single Audit and Major Program Determination worksheet
    .
  3. Select
    Design and review Compliance Audit Program
    . If you have more than 1 major program, follow these steps for each program.
  4. Select
    Compliance Requirements
     in the Program Content column to expand the list.
  5. The compliance requirements for programs that are listed in the Compliance Supplement will be preselected. Mark or unmark any of the compliance requirements you want to add or remove.
  6. If needed, you can reset all selections to default by selecting reset compliance requirements
    Reset Compliance Requirements
    .
  7. Add new procedures as needed.
  8. Select edit prodecure next to a procedure to change its description and add workpaper references.
    If you make edits, flag will be next to that procedure for you to review and reset, if needed.
  9. Select download
    Save
     when you finish, then
    Next
     to move to the next program or finish the engagement.
After you review and modify the compliance programs, you'll go to the next compliance program to review. When each of the compliance programs have been reviewed, the Single Audit is ready to complete.

This article applies to: