Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (Circular A-133) requires that cognizant agencies for audit (as defined in Circular A-133) conduct or obtain quality control reviews of selected single audits. These efforts include desk reviews and quality control reviews (QCRs). Federal Inspectors General (IGs) require corrective action on audit reports that are technically deficient or substandard. For audits that are substandard, the IGs generally refer auditors who are CPAs to state licensing officials and, if they are members, to the AICPA for disciplinary action.
Desk reviews. All single audit reporting packages undergo an initial screening to determine whether they are complete when submitted to the Federal Audit Clearinghouse (FAC) in Jeffersonville, IN. Some IG offices or another office within the agency perform a desk review when the reporting package arrives at the federal agency. The President’s Council on Integrity and Efficiency (PCIE) has issued a desk review guide and checklist, titled Uniform Guide for Initial Review of A-133 Audit Reports, for use by OIGs when performing desk reviews.
Quality control reviews. QCRs are more detailed than desk reviews and typically involve the IG examining the auditor's work. The objectives of a QCR of a single audit are to (1) ensure that the audit was conducted in accordance with applicable standards and that it meets the single audit requirements, (2) identify any follow-up audit work needed, and (3) identify issues that may require management attention. QCRs are performed using the PCIE Uniform Quality Control Review Guide.