“Single Audits – 2019 Compliance Supplement” – PR Prompts!, part 3

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In November 2019, the AICPA published the first of a new semi-annual newsletter, PR Prompts!, designed to help CPAs keep current on peer review news.

The AICPA gave me permission to reprint portions of the newsletter on my blog.

This is the third of six posts to help you stay up to date.

The following comment is quoted verbatim. For ease of reading it will not be set inside quotation marks:


Single Audits – 2019 Compliance Supplement

The 2019 Compliance Supplement (Supplement) used for conducting single audits includes extensive changes from prior years. The most significant change relates to the Office of Management and Budget (OMB) requirement for federal agencies to limit the number of requirements identified as being subject to the compliance audit; it was decreased from a maximum of 12 to 6. The Supplement was issued to reflect these changes (June 2019 edition). The OMB issued a correction edition of the Supplement in September 2019 (August 2019 edition) to address errors in the originally issued Supplement. In October 2019, the U.S. Census Bureau, on behalf of OMB, sent an e-mail to every auditor and auditee of record in the Federal Audit Clearinghouse (FAC) to clarify the effect of the correction Supplement on audits that have already been submitted to the FAC, and audits near completion. The e-mail instructs auditors as follows for single audits subject to the Supplement (i.e., audits of fiscal years beginning after June 30, 2018):

  • Auditors are permitted to perform the audit using either the June or August 2019 edition of the Supplement for reports dated on or before October 31, 2019.
  • Auditors are required to perform the audit using the August 2019 edition for reports dated after October 31, 2019.

Auditors should document the version of the Supplement used for the audit. You can find the August 2019 edition of the Supplement in one large PDF file on the OMB website. However, the Governmental Audit Quality Center (GAQC) has posted the August 2019 edition, broken down by section, on the 2019 OMB Compliance Supplement web  page, along with an indication of which sections were changed. Firms performing governmental engagements are encouraged to join and utilize the GAQC to keep abreast of changes that impact the quality of such engagements. If you have questions about the FAC e-mail or the corrected edition of the 2019 Supplement, contact the National Single Audit Coordinator (NSAC) using the contact information found in the Supplement’s Appendix III.


As mentioned at the top of this post, this article is reprinted with permission of the AICPA.


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