Frequently Asked Questions

We perform financial statement audits, nonprofit audits, Yellow Book (government) audits, Single Audits for federal funding recipients, and Employee Benefit Plan audits. Each audit is conducted by licensed CPAs following applicable standards.

Nonprofits that expend $1,000,000 or more in federal awards annually are required to obtain a Single Audit under 2 CFR 200. Some states set charitable-registration thresholds — for example, effective July 1, 2026 Maryland requires a CPA review at $400,000 and an audit at $1,000,000 in charitable contributions (SB 354); Virginia and DC set no statutory audit threshold. Foundations and government grant-makers frequently require audited financials regardless of revenue.

A Single Audit covers both a financial statement audit and compliance testing for all major federal programs. It's required for organizations expending $1,000,000 or more in federal awards annually, for fiscal years beginning on or after October 1, 2024 (previously $750,000). The reporting package is due to the Federal Audit Clearinghouse by the earlier of 30 days after receipt of the auditor's report or nine months after fiscal year end.

A Yellow Book audit is performed under Government Auditing Standards (GAGAS), issued by the U.S. Government Accountability Office. It is required for Single Audits and is often required by government grant agreements and contracts. It adds requirements beyond GAAS, including stricter auditor independence, government-specific continuing education, and reporting on internal control over financial reporting and on compliance.

An audit provides the highest level of assurance — the CPA examines evidence supporting the financial statements and issues an opinion. A review provides limited assurance through inquiry and analytical procedures. A compilation provides no assurance — the CPA assembles the statements from your records. Lenders, grantors, and boards each have different requirements, so it pays to confirm which level you actually need.

Yes. We perform virtual audits for organizations across the DC metro area and other states using electronic document exchange, scheduled meetings and electronic workpapers. This approach reduces disruption to your team while maintaining full compliance with auditing standards.

It depends on the size and complexity of the organization, the number of federal programs, whether it is a first-year audit, and above all the condition of the records. Organizations with reconciled accounts and organized support finish faster. Single Audits must reach the Federal Audit Clearinghouse within nine months of year end (or 30 days after the auditor's report, if earlier), so early scheduling matters.

Key items include: a complete general ledger, bank reconciliations, grant documentation (award letters, budgets, invoices, reports), payroll records, board minutes, conflict of interest disclosures, and the prior year audit report. We provide a full request list at the start of every engagement.

Generally, employee benefit plans with 100 or more participants with account balances at the beginning of the plan year require an annual audit filed with Form 5500. We perform Employee Benefit Plan audits for both defined contribution and defined benefit plans.

Maryland: effective July 1, 2026 (Bus. Reg. § 6-402, as amended by 2026 ch. 394), registered charities need a CPA audit when gross income from charitable contributions is $1,000,000 or more and a CPA review at $400,000 to $999,999; government grants are excluded. Virginia (Va. Code § 57-49; 2VAC5-610-30) and DC (D.C. Code § 44-1701 et seq.) set no statutory audit or review threshold, though funders and lenders may still require one.

Only if whoever requires the report accepts a review. A review provides limited assurance and does not include testing of evidence, so it does not satisfy a statute, grant, loan covenant, or bylaw that calls for audited financial statements. In Maryland, a review is specifically permitted for charities with $400,000 to $999,999 in charitable contributions.

A SOC 1 report covers a service organization's controls relevant to its customers' financial reporting, such as payroll or claims processing, and is used by customers' auditors. A SOC 2 report covers controls relevant to security, availability, processing integrity, confidentiality, or privacy, and is used by customers and partners evaluating risk. Either can be Type 1 (design at a point in time) or Type 2 (design and operating effectiveness over a period).

In an agreed-upon procedures (AUP) engagement, a CPA performs specific procedures that the engaging party agrees are appropriate and reports the findings, without giving an opinion or conclusion. AUPs are common for grant compliance checks, contract or royalty reviews, and specific requirements from a funder or regulator when a full audit is not needed.

Contractors with flexibly priced contracts containing FAR 52.216-7 must submit a final indirect cost rate proposal (the incurred cost submission) within six months after the end of each fiscal year (FAR 52.216-7(d)(2)). The contracting officer may grant an extension in writing.

Fees depend on the size of the organization, the number of federal programs, and the quality of your records. We are transparent and charge fair fees quoted upfront after a short call.