A Video Explanation of the Various Governmental Auditing Standards
If you perform governmental audits, you know that different governmental auditing standards can come into play. In this video,…
The Yellow Book (also called Government Auditing Standards) is issued by the Government Accountability Office (GAO). These standards are also referred to as generally accepted government auditing standards (GAGAS).
It was updated in 2018 and provides guidance to auditors. As you would expect this guidance is for those that audit governmental entities. So are the Yellow Book requirements applicable to all governments? The answer is no. These types of audits are performed when:
Persons that use the Yellow Book include:
A Yellow Book report is issued by the auditor in addition to the standard audit opinion. That report provides information about internal controls weaknesses and noncompliance with laws and regulations.
So if an auditor noted noncompliance regarding the use of special sales tax funds, he or she would report the noncompliance in the Yellow Book report or in an attached page. Additionally, significant deficiencies and material weaknesses in internal controls are reported here as well.
Auditors performing GAGAS engagements are subject to particular continuing education requirements. A total of 80 hours is required every two years with 24 of those hours in subject matter directly related to the governmental environment, government auditing, or the specific or unique environment in which the audited entity operates. The remaining 56 hours should be in areas that enhance the auditorโs professional expertise.
The Yellow Book provides information with regard to:
AICPA peer reviewers examine these types of engagements to ensure that CPAs are performing them correctly. They are higher risk than standard audit engagements. Why? GAGAS has more requirements, so there is a greater chance that auditors might not perform the engagement in accordance with those standards.
The purpose of Government Auditing Standards is to enhance the quality of governmental audits.
If you perform governmental audits, you know that different governmental auditing standards can come into play. In this video,…
This article tells you what to report when there are no internal control issues. I discuss AICPA and Yellow Book guidance.
What are the 2018 Yellow Book CPE requirements? You’ve heard about the new Yellow Book (effective for audits of…
Yellow Book independence is a big deal. And if you prepare financial statements in a Yellow Book audit, you…
Government Auditing Standards 2018 Revision The Government Accountability Office just issued the new Yellow Book titled Government Auditing Standards…