Audit Requirement Checker

    Answer a few questions to find out whether your organization is required to have an audit, review, or neither — based on entity type, revenue, and federal funding.

    Does my organization need an audit?

    Whether your organization needs an audit depends on your entity type, annual revenue or budget, amount of federal funding, and state charitable registration requirements. Nonprofits with $1,000,000+ in federal grants need a Single Audit. Some states require audited or reviewed financials for charities above contribution thresholds — Maryland requires a CPA review at $400,000 and an audit at $1,000,000 in charitable contributions (effective July 1, 2026), while Virginia and DC set no statutory threshold. Businesses generally need audits for bank loans, investor requirements, or regulatory mandates.

    Check Your Audit Requirements

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    When Is an Audit Required?

    When Is an Audit Required?

    FeatureOrganization TypeTriggerAudit Level
    Nonprofit (federal funds)$1M+ in federal awardsSingle Audit (2 CFR 200)
    Nonprofit DCNo statutory thresholdPer grants, funders, lenders, or bylaws
    Nonprofit Maryland (review)$400K–$999,999 charitable contributions (from July 1, 2026)CPA review
    Nonprofit Maryland (audit)$1M+ charitable contributions (from July 1, 2026)Financial statement audit
    Nonprofit VirginiaNo statutory thresholdForm 990 accepted; audit per grants, funders, or bylaws
    HOA/CondoPer governing documents or state statuteAudit or review
    Small BusinessPer loan covenants or investor agreementsAudit or review
    Government ContractorCost-type federal contractsDCAA accounting system audit
    Employee Benefit Plan100+ participants with account balances (start of plan year)Annual EBP audit (ERISA)

    How Audit Requirements Are Determined

    Most audit requirements come from one of four places: federal grant rules, state charitable solicitation laws, agreements with funders or lenders, and your own bylaws. The checker above screens for the first two. The other two require reading your grant agreements, loan covenants, and governing documents, because they can require an audit even when no law does.

    Federal funding: the Single Audit

    Under the Uniform Guidance (2 CFR 200.501), a nonprofit, state or local government, or institution of higher education that expends $1,000,000 or more in federal awards in a fiscal year beginning on or after October 1, 2024 must have a Single Audit. The prior threshold was $750,000. The test is based on federal awards expended, not received, and includes federal money passed through a state or local agency. For-profit entities are not subject to these rules. Learn more about Single Audit requirements.

    State rules in DC, Maryland, and Virginia

    Maryland is the only jurisdiction in our region with a statutory trigger. Under Business Regulation § 6-402, as amended by 2026 ch. 394 (effective July 1, 2026), a registered charity needs 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 from that measure. See Maryland nonprofit audit requirements.

    Virginia (Va. Code § 57-49; 2VAC5-610-30) and the District of Columbia (D.C. Code § 44-1701 et seq.) set no contribution level that triggers an audit or review. Organizations there usually need an audit because a funder, lender, government grant, or bylaw requires one. See our Virginia and Washington, DC nonprofit audit pages.

    Audit or review?

    A review provides limited assurance through inquiry and analytical procedures. An audit provides reasonable assurance and includes testing the evidence behind your numbers. When an agreement asks for audited financial statements, a review generally will not satisfy it. Other common triggers include 401(k) plans with 100 or more participants with account balances (see employee benefit plan audits) and cost-type federal contracts (see government contractor audits). For a full view of our engagements, visit Audit & Assurance.

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    Frequently Asked Questions

    An audit provides the highest level of assurance — auditors test transactions and internal controls. A review provides limited assurance through analytical procedures. A compilation is the lowest level — a CPA compiles your financial statements without providing assurance.

    Not because of DC law. DC sets no contribution or revenue threshold that requires a CPA audit or review for charitable solicitation licensing (D.C. Code § 44-1701 et seq., administered by DLCP). DC nonprofits need an audit when the federal Single Audit rule applies ($1,000,000+ in federal awards expended), or when DC government grants and contracts, other funders, lenders, or bylaws require one.

    Not because of Virginia law. Virginia sets no contribution threshold that requires a CPA audit or review. VDACS Form 102 registration can be filed with your IRS Form 990/990-EZ/990-PF, certified audited financial statements, or (for 990-N filers) a certified treasurer's report (Va. Code § 57-49; 2VAC5-610-30). Audits are triggered by the federal Single Audit rule, grant terms, funders, lenders, or bylaws.

    Effective July 1, 2026 (SB 354, 2026 Md. Laws ch. 394), Maryland requires an audit by an independent CPA when gross income from charitable contributions in the most recently completed fiscal year is $1,000,000 or more, and a CPA review at $400,000 to $999,999 (Bus. Reg. § 6-402(b)(7)). The prior thresholds were $750,000 and $300,000. Government grants are not counted as charitable contributions.

    A Single Audit is required when an entity (nonprofit, state/local government, or institution of higher education) expends $1,000,000 or more in federal financial assistance in a fiscal year (raised from $750,000 effective for fiscal years beginning on or after October 1, 2024). This includes direct federal grants and federal funds passed through state/local governments.

    We help organizations determine the right level of assurance based on their legal requirements, lender/grantor requirements, and organizational goals. In many cases, a review is sufficient and costs less than an audit. Talk to a CPA to find the right fit.

    No. Maryland measures gross income from charitable contributions in the most recently completed fiscal year, and government grants are excluded from that figure (Bus. Reg. § 6-402, as amended by 2026 Md. Laws ch. 394). Federal grants are tested separately: expending $1,000,000 or more in federal awards triggers a Single Audit regardless of state rules.

    No. The Single Audit rules in 2 CFR 200 Subpart F apply to states, local governments, Indian tribes, institutions of higher education, and nonprofits. For-profit recipients are not covered; any audit requirement comes from the award terms or the pass-through entity (2 CFR 200.501(h)). Government contractors with cost-type contracts are more often subject to DCAA audits.

    Only when the party requiring it allows a review. A review gives limited assurance based on inquiry and analytical procedures; an audit gives reasonable assurance and includes testing of evidence. If a statute, grant agreement, loan covenant, or bylaw calls for audited financial statements, a review generally will not satisfy it.

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