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Why Are My Auditors Doing A Yellow Book and Single Audit?

Recently the State of Arizona began requiring Generally Accepted Government Auditing Standards (GAGAS) audits, or Yellow Book audits, of all Title 48 Governmental Districts with just a few exceptions. This has required smaller governmental entities, largely in more rural areas, to include these requirements in their overall financial statement audits. But you may be asking yourself “what are these Yellow Book audits” and what is my auditor doing differently.

In addition, some entities may receive enough federal funding to qualify them for an OMB A-133 Single Audit. All of these terms mean more time that your auditor will be spending looking into your compliance with grants, contracts, laws, regulations and/or covenants. What that means for you, as a governmental entity, is a need to maintain supporting information and documentation regarding the efforts your organization has taken to ensure your compliance and proper accounting for outside funding. It also means the controls surrounding those activities should be closely evaluated by management and revamped in order to maintain a strong control environment to help prevent or detect any possible misstatements, or worst, fraud.

There is a lot of information on these types of audits online with the Government Accountability Office (GAO) and the State Statutes, and to really know what you’re auditors are looking for in those types of audits, this blog would have to be a whole lot longer, but you’re in luck. Henry+Horne is presenting a free CPE event in late April to discuss the details regarding your single audit and yellow book reports.  The CPE is expected to last two hours in the morning. Free breakfast will be served. To be included in the email blast detailing the locations and times, email

Our professionals have many years of experience working with government organizations. If you have questions on Yellow Book and Single Audits don’t hesitate to contact a Henry+Horne professional adviser.

Brian Hemmerle, CPA, CFE