Yellow Book Audits

Understanding Yellow Book Audit Requirements

If your organization receives government funding, you may be required to have an audit performed under Government Auditing Standards, commonly known as the Yellow Book. Yellow Book requirements often apply to state and local governments, nonprofits, colleges and universities, and some businesses.

Unlike a Single Audit, there is no single dollar threshold that determines whether you need a Yellow Book audit. Instead, the requirement depends on the laws, regulations, grants, contracts, or other funding agreements that apply to your organization.

The Yellow Book also covers attestation engagements and performance audits, although financial audits are one of the most common applications for CPA firms. Whatever type of engagement you need, an experienced team can make the process easier to navigate.

Meet Yellow Book audit requirements with confidence.

Experience. The Difference.

Specialized Experience for a Specialized Audit

Yellow Book financial audits go beyond standard financial statement audits, with additional requirements related to internal controls and auditor reporting. Our experienced audit professionals know these requirements and bring that knowledge to every engagement.

The audit provides independent assurance over your financial reporting and greater visibility into internal controls. It also gives funders and other stakeholders a clearer picture of how your organization is managing public resources.

Fuel Your Progress

With every audit and assurance engagement, we prioritize clear communication, technical accuracy, and a collaborative process that continues year-round. Our team brings deep industry knowledge and practical insight to help you meet requirements, manage risk, and gain a more complete view of your financial position. Let’s build an audit experience that adds value, long after the report is delivered.

Industry Involvement

Yellow Book Audit Frequently Asked Questions

A Yellow Book audit may be required for governments, nonprofits, colleges and universities, and some businesses that receive government funding.

A Yellow Book financial audit follows the usual financial statement auditing standards plus additional Government Auditing Standards such as consideration and reporting of internal control over financial reporting and compliance matters. Additionally, the auditor is required to follow additional standards around independence, continuing education, and peer review.

No. A Single Audit incorporates Yellow Book standards along with additional requirements under the Uniform Guidance. A Yellow Book audit can be required even when your organization does not need a Single Audit.