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Competitive bidding, auditor tenure and the extent of single audit findings

To bid or not to bid is a questionconfonting most of the 60,000 to 70,000 estimated recipients of federal financial assistance requiring single audits each year.' The 1996 Single Audit Act Amendments reduce the number of single;its : ; performed by limiting its requirements to recipients of at least $300,000 in annual federal financial assistance. Nevertheless, virtually all large cities; will still be required to obtain a single audit, and just what impact competitive bidding will have on audit reports remains an open question. A related issue is how long city officials should retain their independent auditors. There is some evidence that length of independent auditor tenure may affect the ...

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