The opinion on your financial statements
The standard GAAS report on whether your statements are fairly presented.
Yellow Book audit services
Audits under Government Auditing Standards (GAGAS) for entities that receive or spend federal funds.
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1,331+
Verified client reviews
16+
Years auditing experience
AICPA
Peer-reviewed firm
50
States served nationwide
What a Yellow Book audit is
A Yellow Book audit is an audit performed under Government Auditing Standards, known as GAGAS or the Yellow Book, issued by the U.S. Government Accountability Office. It is a layer of standards on top of the ordinary audit standards, so it applies to governments, nonprofits, universities, and businesses that receive or spend federal funds.
The Yellow Book adds independence, documentation, and reporting requirements beyond a standard audit. In practice, that means you receive an extra report alongside the opinion on your financial statements.
This is audit and attest work, not tax preparation.
Why organizations choose Dimov Audit
Public sector specialty. Yellow Book work performed by an AICPA peer-reviewed firm, nationwide.
AICPA
peer reviewed
50
states served, nationwide coverage
14+
years average audit and tax experience per staff member
500+
audits completed
Two-report structure
What makes an audit a Yellow Book audit
The Yellow Book is a layer of standards on top of the generally accepted auditing standards (GAAS). When your audit follows both, you receive two reports.
The Yellow Book report on internal control and compliance
A separate report on internal control over financial reporting and on your compliance with laws, regulations, and agreement terms. This second report is what makes it a Yellow Book audit.
Engagement types
The three types of Yellow Book engagement
The Yellow Book covers three kinds of engagement. Dimov Audit focuses on the financial side, which is the financial audit and attestation work.
Financial audits
An opinion on whether the financial statements are fairly presented.Attestation engagements
Examinations, reviews, or agreed upon procedures on a specific subject matter or assertion.Performance audits
An assessment of whether a program is economical, efficient, and effective.
When required
When a Yellow Book audit is required
You need a Yellow Book audit when a law, an agreement, or a funder requires your audit to follow Government Auditing Standards.
A grant agreement requires GAGAS, which can apply even below the single audit threshold.
A debt or loan agreement requires it, for example electric membership corporations with Rural Utilities Service loans.
State or local law requires it for your type of entity.
You elect it in the engagement letter, even when no rule requires it.
Single audit, in short. A single audit is performed under the Yellow Book, so it is one of the most common reasons an organization needs one. For the $1,000,000 threshold, the SEFA, and major program details, see our single audit page.
Auditor qualifications
How to tell your Yellow Book auditor is qualified
Not every CPA firm can perform a Yellow Book audit. A qualified firm meets specific requirements.
Government CPE
At least 80 hours every two years, with 24 directly in government auditing.Independence under GAGAS
Stricter independence rules than a standard audit, especially around nonaudit services.External peer review
An independent review every three years that covers the firm's GAGAS engagements.Current standards
Up to date on the 2024 Yellow Book revision.
How it works
How a Yellow Book audit works
- 1
Planning and risk assessment
We agree on scope, the standards that apply, and your reporting deadlines. - 2
Test internal control and compliance
We test controls over financial reporting and your compliance with the laws, regulations, and agreements that apply. - 3
Audit the financial statements
We audit your statements under both GAAS and Government Auditing Standards. - 4
Issue the opinion and the Yellow Book report
You receive the opinion on your statements and the separate report on internal control and compliance. - 5
Debrief findings and corrective action
We walk through any findings and the corrective action plan.
How to prepare
How to prepare for a Yellow Book audit
Preparation keeps a Yellow Book audit on schedule. Before we start, get these in order.
- Reconcile your records and grant schedules.
- Document your controls over federal funds.
- Resolve prior year findings and complete corrective action.
- Gather your grant and debt agreements so we can confirm what applies.
Not sure you are ready?
Start with a readiness review
Many organizations are not fully audit ready on day one. We assess where your records stand and give you a clear plan. Your team makes the changes and we handle the audit when you are set. We assess and advise, we do not prepare or adjust your records, which is how we protect our independence to audit you.
What a Yellow Book audit costs
Cost depends on scope, not a flat rate.
These are the factors, not a quote. We price against your funding and reporting once we understand the engagement.
Why us
Why organizations choose Dimov Audit
Audit only focus
As a division of Dimov Tax, Dimov Audit only does audit work, which keeps us efficient and cost effective.Performs Yellow Book and single audits
We work under Government Auditing Standards and the Uniform Guidance.AICPA peer reviewed
Our work is independently reviewed to professional standards.Nationwide
We serve clients across all 50 states.
Related audit services
Related audit services
If a related audit fits your situation, we cover those too.
- Single auditFederal compliance audit required when expended federal awards cross the $1,000,000 threshold.
- Government audit servicesThe public sector hub: GASB, ACFR, and Uniform Guidance work across state and local government.
- Nonprofit auditFinancial statement audits for 501(c) organizations and grant recipients.
- Financial statement auditsThe standard audit level for organizations that need a signed opinion.
Talk to a Yellow Book auditor
Tell us about your funding, your grant and debt agreements, and your reporting deadlines.
We will scope the engagement and give you a clear quote. Handled directly by a professional.
Connect with Dimov Audit
Our dedicated team is ready to assist you on your path to financial success.
Email
hello@dimovaudit.comPhone
855-622-9009New York Office
24 Mercer St, 2nd Floor, Suite 214
New York, NY 10013
United States
Frequently Asked Questions
What is a financial statement audit?
A financial statement audit involves an independent examination of a company's financial records to ensure accuracy and compliance with accounting standards.Why does my company need a financial statement audit?
Audits are essential for compliance with legal and regulatory requirements, investor and stakeholder confidence, and accurate financial reporting.What does a financial statement audit include?
It includes a thorough review of financial statements, assessment of internal controls, and ensuring adherence to accounting principles.How do I prepare for a financial statement audit?
Preparation involves organizing financial records, understanding the audit process, and collaborating with the audit team for efficient execution.How long does a financial statement audit take?
The duration varies based on company size and complexity but generally includes planning, fieldwork, and wrap-up phases.Can I request a consultation with Dimov Audit?
Yes, we welcome inquiries and consultations. You can request a consultation through our Contact Us page, and our team will be in touch to schedule a convenient time.
Reviewed byGeorge Dimov, CPA.Founder of Dimov Audit, the firm behind 500+ audit and attestation engagements across all 50 states.
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