If you’ve determined that you need a single audit, your next step is to find an accounting firm.* This may seem like something you could accomplish using Google or Yelp, but you should probably conduct a professional evaluation to ensure you’re getting quality service. Here are three major questions to ask yourself when evaluating your firm of choice.
*Check out this article if you need some guidance on that.
1) Can you validate their expertise?
Most businesses proclaim to be the best in the business and expert in their field, but don’t take that at face value. Inquire about the number of single audits the firm has handled. If they’ve performed at least five to ten over the past couple of years, you shouldn’t worry about their expertise.
2) Are they up to date on compliance requirements?
Compliance requirements have changed dramatically for single audits over the past few years, so it’s important that the firm has current experience. In fact, the compliance supplement was recently updated, which provides additional guidance to clients and audit firms. Your firm of choice should be aware and knowledgeable of this.
3) Are they asking you the right questions?
Expect the firm to ask some key questions in order to determine the scope of the engagement, such as:
- How many federal programs and/or clusters of programs fall under your organization?
- How did you prepare your SEFA (Schedule of Federal Expenditures)?
- Do you have subrecipients?
- If you have subrecipients, are they contractors or vendors?
- Are any of your grant programs considered loan programs?
If the firm isn’t asking any of these questions, be skeptical of their experience in conducting single audits.
We know that selecting a firm to conduct your single audit can be daunting—but following these guidelines should help narrow down your search. Our firm has a lot of government agency and not-for-profit expertise, and we welcome new partnerships. Contact us if you’re interested in partnering with us.