; (2) the Commissioner of Internal Revenue has approved the institution as tax exempt for purposes of the Internal Revenue Code of 1986 and the institution is an organization described in clause (ii) or (vi) of section 170(b)(1)(A) of such Code; and (3) a nationally recognized accrediting agency or association recognized by the Secretary pursuant to section 496 has approved the nonprofit status of the institution. . (b) Review and enforcement process (1) In general Section 487(c)(1) of the Act (20 U.S.C. 1094(c)(1)) is amended— (A) by redesignating subparagraphs (B) through (I)as subparagraphs (C) through (J), respectively; and (B) by inserting after subparagraph (A) the following: (B) (i) a requirement that an institution of higher education shall use the same qualified, independent organization or person, in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, and functions, and as prescribed in regulations of the Secretary, for both the financial and compliance audits required for a given year under subparagraph (A); (ii) a requirement that the qualified, independent organization or person chosen to conduct the annual financial and compliance audits under subparagraph (A) shall document, in the audit, any transactions or relationships that may conflict with an institution’s status as a nonprofit institution of higher education or public institution of higher education