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3.19 Audit Requirements

Full-Scope Auditing

In addition to arranging and providing for the organizational, financial, and compliance audits required by 2 C.F.R. Subpart F (?? 200.500), direct recipients and subrecipients are encouraged to provide for additional audit coverage, as deemed appropriate.

  • The additional audit coverage to be provided should be determined based on the circumstances surrounding the particular organization, function, program, or activity to be audited; management needs; and available audit capability.
  • As a direct recipient or subrecipient, you can determine the need for additional audit coverage by considering answers to the following questions about the organization that may need the coverage:
  • Are resources managed and used economically and efficiently?
  • Are desired results and objectives achieved effectively?
  • Is the accounting system and system of internal controls acceptable prior to the receipt of awarding agency funds? At a minimum, internal controls should include documented written procedures of the direct recipient or subrecipient.??
  • Are the systems and controls adequate to detect fraud, waste, and abuse?