Services
Governmental Audit
A governmental audit is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS), commonly known as the “Yellow Book”. While a standard audit focuses on financial accuracy, a Yellow Book audit adds extra layers of scrutiny regarding how public money is managed and whether the organization is following specific legal and grant requirements.
* Audits are performed by P&I CPA PC
2026 Standards Ready
We have fully implemented the 2024 Yellow Book’s new Quality Management System requirements, ensuring our work meets the most current federal benchmarks for 2026.
Specialized Expertise
Our auditors meet strict GAGAS Continuing Professional Education (CPE) requirements, including specialized training in government-specific ethics and independence.
Actionable Findings
We don’t just report issues; we provide clear summaries and recommendations to help your leadership improve efficiency and maintain public trust.
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Who Requires These Services?
You may be required to undergo a Yellow Book or GAGAS audit if your organization falls into these categories.
Nonprofits
Organizations expending $1 million or more in federal awards in a fiscal year (the threshold increased from $750,000 to $1 million starting in late 2024/2025).
Government Entities
Cities, counties, school districts, and state agencies.
For-Profit Contractors
Private companies performing work under government contracts that mandate GAGAS compliance.
Recipients of State/Local Grants
Many state agencies require Yellow Book standards for grants, even if they aren't federally funded.
The Parr & Ibarra Difference
Our 3-Pillar Approach to Government Audits
Financial Integrity
We provide an opinion on whether your financial statements are presented fairly and accurately.
Compliance Testing
We verify that your organization is adhering to the specific laws, regulations, and grant terms that govern your funding.
Internal Control Reporting
Based on our findings, we issue a formal report with an independent opinion on whether your financial statements are fairly presented and comply with accounting standards (e.g., U.S. GAAP).
We issue a formal report on your internal controls, identifying any “material weaknesses” or “significant deficiencies” to help you proactively manage risk.
Contact Us
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