When might single audits not be required?

Single audits are specifically designed for entities that receive federal funding and expend $750,000 or more in federal funds during a fiscal year. However, there are specific scenarios in which a single audit may not be required.

In the context of program-specific audit requirements, if an entity has already satisfied those requirements through compliance with alternative audit provisions (such as a separate audit that focuses solely on a specific federal program), then a single audit may not be necessary. This means that if an entity is being audited for a particular program according to the established guidelines that satisfy federal expectations, it can forgo the comprehensive single audit. This scenario illustrates that meeting the specific compliance requirements for individual programs can provide an acceptable alternative to a full single audit, thereby exempting the entity from such an obligation.

Considering the other options, a financial statement audit does not typically replace the need for a single audit when federal funds are involved; having only one program does not inherently eliminate the requirement if the funding threshold is met; and exceeding $750,000 in expenditures actually establishes the requirement for a single audit, contrary to what the option suggests.