When is a nonprofit organization required to have an audit in California? A charitable nonprofit organization with more than $2 million in revenues for a year is required to have an audit, unless the revenue comes primarily from government funds that are reported on separately. The organization must form an audit committee, have the board approve the CEO and CFO's compensation annually, and follow specific rules with regard to the use of professional fund raisers.
At what point does a nonprofit organization require an audit in accordance with OMB Circular A-133? The annual threshold for an A-133 audit is $500,000 of federal funds, received either directly or indirectly via a pass-through government or nonprofit agency.
What is a Yellow Book audit? A Yellow Book audit is an audit in accordance with both U.S. generally accepted auditing standards and Government Auditing Standards . Yellow Book refers to the color of the cover of the book that contains Government Auditing Standards . Generally, a Yellow Book audit is required by a grantor when the organization does not qualify for an A-133 audit, but received significant government funding.
