The final revised standards were released in august 1988, superseding the 1981 revision. Discuss the relationship between gas and other professional standards, and yellow book guidance regarding independence. The yellow book is the book of standards and guidance for auditors and audit organizations, outlining the. Government accountability office gao are designed to provide a framework for highquality governmental audits, which include audits of government entities and entities receiving government awards.
One yellow book hour 50 minutes equivalent to a cpe hour. Generally accepted government auditing standards gagas and related topics, such as internal control as. Understand the new format for government auditing standards which differentiates requirements from. At this time, there are no amendments or interpretive guidance for the 2018 revision of government auditing standards yellow book revisions undergo an extensive, deliberative process, including public comments and input from the comptroller generals advisory council on government auditing standards. If your audit report contains a yellow book report usually located just after the notes to the financial statements, then that engagement is subject to generally accepted government auditing standards gagas. Government auditing standards presented by connecticut society of cpas ctcpa. Gain a working knowledge of the latest yellow book standards from a to z. Hear about the new yellow book requirements for financial statement audits, attestation engagements, and performance audits. Effective with the implementation dates for the 2018 revision of the yellow book, the gao is retiring government auditing standards. Generally accepted government auditing standards yellow.
The yellow book auditing standards contain several requirements that cause auditors heartburn including an intense continuing professional education requirement, stringent independence standards, and the use of the elements of a finding. Similar to the 2011 yellow book, cpe requirements are. Government december 2011 auditing standards 2011 revision the 2011 revision of government auditing standards supersedes the 2007 revision. This aicpa practice aid titled, 2011 yellow book independence non audit services documentation practice aid, is intended to help auditors performing audits under the 2011 edition of government auditing standards referred to as the 2011 yellow book to comply with its independence rules. The mncpa offers yellow book credit for select seminars and conferences. The 2011 revision should be used by government auditors until further updates and revisions are made. Use features like bookmarks, note taking and highlighting while reading gao yellow book government auditing standards 2018 revision.
There is no formal preapproval process for the mncpa or any other sponsor to qualify a course for yellow book credit. In brief the government accountability office recently released a new version of government auditing standards, also known as the yellow book. I was inspired by this sentence from the comptrollers introductory letter on page 1. The 2011 revision of government auditing standards is effective for financial audits and attestation engagements for periods ending on or after december 15, 2012, and for performance audits beginning on or after december 15, 2011. Identify the revised requirements and guidance related to independence in the 2018 revision of the yellow book. Government auditing standards, december 2011 revision also referred to as the. The government accountability office gao has released its 2018 update of government auditing standards, also called the yellow book because it is literally yellow, which contains major changes from, and supersedes, the previous 2011 update. A revision, entitled government auditing standards. John damico, director in our professional standards group, will be instructing the fullday seminar the new yellow book. Added to the yellow book independence standards for clarification. This course provides the information an auditor needs to design, perform, and report on a financial statement audit of a governmental entity in accordance with generally accepted auditing standards gaas. Governmental auditing, these learning resources are designed to help cpas understand the knowledge and skills necessary to perform highquality single audits, yellow book audits, and audits of state and local government financial statements.
Gao has added application guidance that emphasizes the need to obtain gagasspecific cpe, particularly during years in which there are revisions to the standards, to assist auditors in maintaining the competence necessary to conduct gagas engagements. This publication supersedes gao07731g, government auditing standards. Identify the guidance found in government auditing standards gas, 2018 revision. We invite your comments on the proposed changes, which reflect developments in the accounting and auditing profession. You can audit a government, but not have to use the government auditing standards. Identify the types of engagements that are performed under government auditing standards.
Recall the requirements regarding cpe, professional judgment, quality. Overlay of generally accepted auditing standards gaas issued by the auditing standards board. The 2018 yellow book supersedes the 2011 revision, the 2005 government auditing standards. What are the requirements for yellow book continuing professional education cpe. It provides additional guidance for financial statement audits conducted in accordance with government auditing standards the yellow book. Aicpa suggests changes to gaos yellow book exposure draft. These standards, commonly referred to as generally accepted government auditing. The 2011 revision of government auditing standards supersedes the 2007. Find out what stayed the same and what changed in the 2011 revision to the yellow book. Government auditing standards, commonly known as the yellow book. This week, the government accountability office gao published a revised version of the generally accepted government auditing standards gagas, also known as the yellow book, which among other things has been restructured to distinguish requirements from application guidance how have the independence standards changed. Yellow book continuing education requirements are governed by the u.
Guidance on gagas requirements for continuing professional education. The government accountability office recently released a new version of government auditing standards, also known as the yellow book. Updating government auditing standards the 2018 yellow book. Government auditing standards known as the yellow book provide a framework for performing highquality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. Cpe requirements prescribed by the government auditing standards. The 2018 yellow book retains the same cpe hour requirement as the 2011 yellow book. Page 2 gao18568g government auditing standards effective with the implementation dates for the 2018 revision of government auditing standards, gao is also retiring government auditing standards. The yellow book s standards and guidance for auditors and audit organizations provide critical information for federal, state, and local government programs regarding audit reports, professional qualifications for auditors, and audit organization quality control. If you are an auditor performing yellow book audits, it is essential you understand the recently revised concepts and standards of generally accepted government auditing standards gagas. The update revises the july 2007 yellow book and is expected to be effective for audits beginning after dec. Review general standards and types of engagements covered by the yellow book.
Standards, often referred to as the yellow book or. Gagas contains the framework for ensuring that auditors possess competence, integrity, objectivity, and independence in. Upon completion of this eworkshop, participants will be able to understand changes to the government auditing standards since 2011 and selected 2018 requirements, in particular. Updating government auditing standards the 2018 yellow book posted on july 17, 2018 by watchblog today we issued a new revision of the generally accepted government auditing standards, also known as the yellow book, which supersedes the 2011 revision of the standards. This is the government auditing standards 2011 version. The 2018 revision moves the standards around, reemphasizes audit independence, and increases the auditors responsibilities for assessing, documenting, and disclosing internal controls. The 2018 revision of government auditing standards supersedes the 2011 revision gao12331g, december 2011, the 2005 government auditing standards. Gagas generally accepted governmentauditing standards. An electronic version of this document can be accessed on gaos yellow book web. Download it once and read it on your kindle device, pc, phones or tablets. Guidance on gagas requirements for continuing professional education and government auditing standards. Truly understand the relationship of government auditing standards a. Yellow book cpe requirements a summary cpa hall talk.
And in the sas world, two nonos are specifically mentioned. Gao yellow book government auditing standards 2018. Government auditing standards both at ed stage and in developing final standards 7 accessing the 2018 yellow book the 2018 yellow book can be accessed on the gao yellow book web page. The 80hour rule every two years the 24hour rule every two years then you must answer. Updating government auditing standards the 2017 yellow. Government auditing standards 2018 revision and summary of. Office gao issued government auditing standards, 2018 revision gao18568g. Identify the additional requirements for performing a financial audit under gagas. In july 1993, an ed was released proposing changes to the 1988 yellow book revision. So, for the yellow book to be applicable at your hospital or city, see if there is a local or state law requiring that audits of the hospital or city be conducted in accordance with gagas. This document outlines standards that contain requirements for auditor reporting on internal control.
Because even though technically the new yellow book is not yet effective, if you are performing a calendar yearend audit under the 2011 yellow book, and also considering performance of nonaudit services, you need to be in compliance with the new independence requirements at the beginning of the audit periodthat is, january 1, 2012. Thankfully, the revised format of the yellow book puts all must and. Gao yellow book government auditing standards 2018 revision kindle edition by gao, united states government. Failure to perform and audit in conformance with these standards can damage a firms reputation, and potentially render the costs of the audit as. Government advisory council the advisory council on government auditing standards was established to provide input on the yellow book in an effort to keep the standards uptodate and effective. The aforementioned government accountability office is the author of theyellow book. Auditors must use professional judgment when determining and documenting if a seminar qualifies for yellow book in accordance with the government accountability office, government auditing standards, december 2011 revision and guidance on gagas requirements for continuing professional education. New requirements for reporting waste that is detected during an audit. Today we issued an exposure draft containing proposed updates to generally accepted government auditing standards, also known as the yellow book.
Gao issues revised yellow book standards for government. Government auditing standards, december 2011 revision and guidance on gagas. Government auditing standards yellow book practice aids. The yellow book provides standards and guidance for auditors and audit organizations, outlining the requirements for audit reports, professional qualifications for auditors, and audit organization quality control. Aicpa suggests changes to gaos yellow book exposure draft july 20, 2017 the american institute of cpas aicpa issued a comment letter to the government accountability office gao on july 6 on proposed revisions to government auditing standards also referred to as the yellow book. Recognize the additional gagas reporting requirements for financial audits.
Update on the developments in government auditing standards. Below we will address 1 who is subject to the yellow book cpe requirements and 2 what cpe classes satisfy those requirements. Gao publishes 2018 revision to the government auditing. The gaos yellow book auditing standards also known as gagas set a high bar for auditors of government programs.
It looks like the auditors are unaware of a significant requirement of the yellow book government auditing standards. Government auditing standards yellow book practice aids and. Professionals who audit government programs will likely use and comply with government auditing standards yellow book. This document provides guidance to auditors and audit organizations in implementing the continuing professional education cpe requirements prescribed by the government auditing standards yellow book issued by the comptroller general of the united states of the government accountability office. The professional standards presented in this 2018 revision of government auditing standards known as the yellow book provide a framework for performing highquality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. New gao yellow book clarifies independence requirements. Government auditing standards june 26, 2019 ctcpa education center. In august, the government accountability office gao issued proposed standards revising generally accepted government auditing standards gagas, commonly known as the yellow book. Also known as the yellow book, the revision supersedes the 2011 version of the standards. Gao releases proposed changes to yellow book auditing.
Resources include the most uptodate information on the uniform guidance and recent. This document provides guidance to auditors and audit organizations in implementing the continuing professional education cpe requirements prescribed by the government auditing standards yellow book issued by the comptroller general of the united states of the government accountability office gao. These standards provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. The revised version has been reorganized and realigned with the aim of making it easier for professionals to find relevant rules when performing research.