 The compliance component of a Single Audit covers the study and understanding (planning stage) as well as the testing and evaluation (exam stage) of the recipient with respect to federal assistance usage, operations and compliance with laws and regulations.The financial component is exactly like a financial audit of a non-federal entity which includes the audit of the financial statements and accompanying notes.Depending on the recipient, the Single Audit can be simple and straightforward, or it could be complex and troublesome.