Yellow Book Audit Services — GAGAS for DC, MD & VA Organizations

Not exactly. A Single Audit requires Yellow Book/GAGAS as its audit standard — so every Single Audit is a Yellow Book audit. But Yellow Book can also be required for audits that don't meet the $1M federal threshold. Yellow Book is the standard; Single Audit is the engagement type.

Check the audit requirements section of your grant agreement. Common language includes: "audit must be performed in accordance with Government Auditing Standards," "GAGAS," or "Yellow Book." If unclear, we can review your grant agreement and advise.

Yes. Yellow Book auditors must complete 80 hours of CPE every 2 years, of which 24 hours must be directly related to government auditing, the government environment, or the specific environment of the audited entity. Our CPAs maintain current Yellow Book qualifications.

Yellow Book independence standards are stricter than GAAS. Auditors may never assume management responsibilities, and nonaudit services such as preparing the financial statements, bookkeeping or payroll create a self-review threat that must be evaluated and documented; if safeguards cannot reduce it to an acceptable level, the auditor cannot perform the service. Many organizations therefore prepare their own statements or use a separate firm. We discuss independence before any engagement begins.

GAGAS auditors must report all significant deficiencies and material weaknesses in internal controls, and all instances of noncompliance with laws, regulations, and grant provisions that are material to the financial statements. These are reported in separate GAGAS reports beyond the standard financial statement opinion.

GAGAS applies when a law, regulation, grant agreement or contract requires it. In practice that includes every Single Audit under 2 CFR 200 Subpart F, audits of state and local governments, and many nonprofit, charter school and housing audits where the funder specifies Government Auditing Standards in the award.

In addition to the opinion on the financial statements, the auditor issues a report on internal control over financial reporting and on compliance and other matters based on the audit. When a Single Audit applies, a third report covers compliance for each major federal program and related internal control.

GAO issued the 2024 revision of Government Auditing Standards (GAO-24-106786). For financial audits, attestation engagements and reviews of financial statements it is effective for periods beginning on or after December 15, 2025; earlier periods follow the 2018 revision as amended.

Yellow Book audit 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. Compared with a GAAS-only audit, the additional effort reflects expanded independence requirements, additional reporting, and the specialized expertise required.

Yes — when your organization is subject to a Single Audit, the GAGAS procedures are performed as part of the Single Audit package. You don't pay for two separate audits. The GAGAS reports are incorporated into the Single Audit report package.

If prior-year audits were performed without proper GAGAS qualifications, those audits may not satisfy your grant requirements. This can trigger findings, require re-auditing, or jeopardize grant compliance. We can review prior-year reports and advise on remediation.