Governmental audits include compliance audits (referred to as single audits) performed under the Single Audit Act Amendments of 1996 and the Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), program specific audits as defined under the Uniform Guidance, and other compliance audits and attestation engagements performed as required by federal, state, or local laws and regulations. Every year, the federal government awards billions of dollars in grants, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, food commodities and other noncash assistance, and direct appropriations and federal cost reimbursements to nonfederal grantees, which are subject to compliance audit requirements. The nonfederal entities also require financial statement audits performed under AICPA auditing standards and Government Auditing Standards.

Governmental audits also include financial statement audits performed under Government Auditing Standards on entities such as states and local governments, not-for-profit organizations, institutions of higher education, and certain for-profit organizations.