Federal, state, and local governments may have thresholds that require not-for-profits to conduct a review or audit. These requirements include an independent audit, review, or compilation of generally accepted accounting principles (GAAP) financial statements.
As many as 26 US states require charitable not-for-profits to submit a copy of their audited financial statements when submitting their registration.
For example, California requires an audit when gross annual revenue exceeds $2 million. Washington State requires an audit when gross revenue exceeds $3 million over three preceding years. Other states, such as Oregon and Texas, have no state law requirement.