3.19 Audit Requirements
In addition to arranging and providing for the organizational, financial, and compliance audits required by OMB Circular A-133, 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?
- Are the systems and controls adequate to detect fraud, waste, and abuse?