The U.S. Department of Housing and Urban Development (HUD) requires audits of entities participating in various HUD programs.  For example, residential mortgage lenders who provide FHA loans must re-certificate their status with HUD by submitting audit reports on their financial and compliance issues.

Annual recertification

In order to maintain FHA approval, each lender must complete an annual recertification package within 90 days of its fiscal year end. For 2022, the deadline to recertify their FHA approval on 2022 information is March 31, 2023.

Difference with regular financial statement audit

HUD Audits must be performed in accordance with the most currently effective Government Accountability Office generally accepted government auditing standards (GAGAS), auditing standards generally accepted in the United States of America (GAAS) and HUD audit guide. In addition, HUD audits requires many additional reports and schedules that the regular audit does not demand. These regulations and requirements are updated frequently.  Therefore auditors must educate themselves to meet the requirement of the standards. 

The federal estate tax is imposed on the transfer of an individual's property at death and on certain other transfers considered the equivalent of a transfer at death. The tax is imposed on the decedent's taxable estate plus the decedent's post-1976 lifetime taxable gifts that are not included in the gross estate.

The federal gift tax is imposed on the lifetime transfer of property from an individual to a donee for less than adequate and full consideration. The transfer may be direct or indirect and is measured by the value of the property passing from the donor. In essence, all transactions in which property or property interests are transferred to another for less than full and adequate consideration are gifts subject to the gift tax.