What Is a Regular Audit?
A regular audit, typically conducted under Generally Accepted Auditing Standards (GAAS) or the Yellow Book (GAGAS), focuses primarily on an entity’s financial statements. The goal is to determine whether the financial records are fairly presented in accordance with generally accepted accounting principles (GAAP). Regular audits may be required by state or local law, organizational bylaws, or funding agreements.
When performed under the Yellow Book, a regular audit must also meet higher standards of independence, ethics, and reporting, particularly for organizations that receive government funds—but it may not address federal program-specific compliance unless explicitly required.
What Is a Single Audit?
A Single Audit is more comprehensive. It is required for any non-federal entity that expends $1,000,000 or more in federal awards (effective for fiscal years beginning on or after October 1, 2024). Governed by the Single Audit Act and the Uniform Guidance (2 CFR Part 200, Subpart F), this type of audit includes two key components:
Compliance Audit – This part reviews how the organization complies with specific requirements of each major federal program it participates in, such as eligibility rules, reporting standards, procurement policies, and allowable costs.
Key Differences Between a Single Audit and a Regular Audit
In summary, while both audits help ensure financial accountability, a Single Audit provides a deeper level of assurance to the federal government by verifying both financial accuracy and regulatory compliance with federal funding rules.
