New federal regulatory requirements have changed the rules for performing single audits and have introduced a required periodic study of single audit quality, the first of which may scope in audits performed with year-ends as early as April 2017
Previous federal studies of single audit quality have indicated quality challenges in this area. More recently, during 2014 and 2015, the AICPA Peer Review Program engaged experts in public practice to review a statistical sample of “must-select” engagements, including single audits. These experts found that 44 percent of the selected engagements did not conform to applicable professional standards in all material respects. Issues identified in the reviews were significant, including missed major programs and failure to perform internal control testing.
Now is the time to ensure that your firm is up to speed on the Uniform Guidance.