The revised standards also known as the yellow book, or gas were restructured by the gao to separate the standards requirements from the application guidance see the sidebar restructured yellow book. Second edition of supplemental iia guidance provides clarity relating to similarities and differences between iia standards red book and government accountability office government audit standards yellow book. Jan 26, 2018 it has had its impact mainly through the gaos yellow book, government auditing standards standards for audit of governmental organizations, programs, activities, and functions, and through. The gao yellow book, first issued by the comptroller general of the united states in 1972, is intended to. Gao yellow book government auditing standards 2018. To assist participants in complying with the yellow book when conducting audits in. In july 2018, the government accountability office gao released an updated version of the government auditing standards yellow book as a followon to a 2017 exposure draft. Inform and teach participants about the changes to the yellow book 2. Government auditing standards and standards for internal control in the federal. Government accountability office gao and the institute of internal auditors iia are recognized nationally and internationally as leaders in promoting high quality audit work through the issuance of professional auditing standards. 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. Later that year, the professional ethics executive committee peec of the american institute of certified. Address the unique requirements of governmental entities establish general standards for both governmental and nongovernmental auditors performing audits in.
Last revised in 2011, the yellow book is designed to help government auditors at the federal, state, and local levels produce highquality audits that reflect competence, integrity, objectivity, and independence. Government accountability office gao has issued the 2018 revision of generally accepted government auditing standards gagas, also known as the 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 gao. The book in which these standards are contained has a bright yellow cover, so government auditing standards are often referred to as yellow book standards. The generally accepted government auditing standards, also known as the yellow book, provides a framework for conducting highquality audits with. Updating government auditing standards the 2018 yellow book. The yellow book is the book of standards and guidance for auditors and audit organizations, outlining the characteristics of good audit reports, professional qualifications for auditors, and audit quality guidelines. The standards apply to both financial and performance audits of government agencies. Revised gao and aicpa independence rules audit conduct. Gao issues revised yellow book standards for government auditors.
The yellow book is used by auditors of government entities, entities that receive government awards, and other audit organizations performing yellow book audits. Guidance on gagas requirements for continuing professional education and government auditing standards. Government auditing standards the yellow book 2018 quality standards for digital forensics 2012 quality standards for investigations 2011 quality standards for inspection and evaluation the blue book 2012 quality standards for federal offices of inspector general the silver book 2012. Does an audit of a tribes 401k plan need to be done in accordance with the yellow book.
Financial audit standards require that auditors state their objectives using management assertions. Ed was issued for public comment in april 2017 gao received over 1,700 individual comments final standards issued in july 2018 consultation with advisory council on government auditing standards both at ed stage and in developing final standards. Generally accepted government auditing standards yellow. Last revised in 2011, the yellow book is designed to help government auditors at the federal, state, and local levels produce highquality audits that reflect competence. To provide an overview of the audit and internal control standards promulgated by gao with a focus on ethical considerations. Use features like bookmarks, note taking and highlighting while reading gao yellow book government auditing standards 2018 revision. Gao yellow book government auditing standards 2018 revision united states government gao on. Page i gao18568g government auditing standards letter 1 chapter 1. Update on the developments in government auditing standards. The generally accepted government auditing standards gagas, commonly referred to as the yellow book, are produced in the united states by the government accountability office gao. The 2007 yellow book became applicable for financial audits and attestation engagements for periods beginning on or after january 1, 2008, and for performance audits beginning on or after january 1, 2008. Government auditing standards yellow book practice aids and.
The name yellow book to many conjures memories of big yellow phone directories used with rotary dial phones however, in the government auditing world, yellow book is the moniker given to the government auditing standards manual, with its distinctive bright yellow cover that is issued by the comptroller general of the united states in the government accountability office. In addition to highlighting the major revisions, the slides contain information about the process used to issue the july 2007 yellow book, the reasons for the changes, what the. The purpose of the red bookyellow book comparison is to identify similar principles and key differences between the iias ippf red book and the u. What kind of training and experience make a competent auditor. Developing standards, methodologies, audit guides, audit. Last revised in 2011, the yellow book is designed to. The 2011 revision of government auditing standards represents a modernized version of the standards, taking into account recent changes in other auditing standards, including international standards. The gao keeps trying to perfect the independence standards because if an auditor is not deemed objective and independent by the users of the audit results, what the auditor says in the audit report is questionable. Breaking down the 2018 changes to the yellow book standards. Where to find the yellow book the yellow book is available on. Updated comprehensive slide set gao has issued an updated comprehensive set of annotated slides to assist the government audit community in developing training on the july 2007 revision of government auditing standards.
Guidance on gagas requirements for continuing professional education gao05568g, april 2005, and the 2014 government auditing standards. A copy of the yellow book is available on the gao website. One of the toughest aspects of doing a yellow book audit is complying with the yellow book cpe requirements. Other standards that may apply to government audit organizations.
In july 2007, the gao issued an omnibus revision to the yellow book. There are other sets of standards set by internationallybased organizations that may apply to public sector auditors in the united states. Auditors performing engagements under generally accepted government auditing standards gagas are subject to new rules reinforcing the principles of transparency and accountability under revisions published by the u. Government accountability office s generally accepted government auditing standards yellow book. Supplemental guidance iia standards and gagas comparison. Gao releases proposed changes to yellow book auditing standards. Government auditing standards yellow book practice aids. Yellow book revisions update independence guidance.
Accountability office gao, is the statement of auditing standards for audits of government. Government auditing standards the yellow book acqnotes. Jun 11, 2019 the nature of the audit types is similar, however each align with different standards. Yellow book revisions update independence guidance journal. The name yellow book to many conjures memories of big yellow phone directories used with rotary dial phones however, in the government auditing world, yellow book is the moniker given to the government auditing standards manual, with its distinctive bright yellow cover that is issued by the comptroller general of the united states in the government accountability office gao. Gao yellow book government auditing standards 2018 revision kindle edition by united states government gao. Government accountability office gao issued a revised version of the government auditing standards also known as the yellow book, which updated the independence rules. The revised version has been reorganized and realigned with the aim of making it easier for professionals to.
Every year the gao publishes a book that contains all of its updated rules and standards for conducting audits in the public sector. Professional auditing standards provide a framework for conducting high quality audits. The nature of the audit types is similar, however each align with different standards. This short course focuses on the requirements of the yellow book that challenge government performance auditors including the cpe, independence, and reporting requirements. Called the redyellow book, it identifies the differences between the two and offers suggestions for organizations that follow both.
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. Gao yellow book government auditing standards 2018 revision. The revised version has been reorganized and realigned with the aim of making it easier for professionals to find relevant rules when performing research. The yellow book is the annual publication by the gao of the generally accepted governmental auditing standards. Gao updates yellow book, the preeminent standards for government auditing. This book has always featured a bright yellow cover. Gao invites comments on the proposed changes to government auditing standards, commonly known as the yellow book. Quality standards council of the inspectors general on. The yellow book compliance report is designed as a 2year cpe period. Download it once and read it on your kindle device, pc, phones or tablets. Going gagas for the gao yellow book government book talk. Effective with the implementation dates for the 2018 revision of the yellow book, the gao is retiring government auditing standards. Address the unique requirements of governmental entities.
Jul 17, 2018 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. Cpe stands for continuing professional education, by the way. In december 2011, the gao issued the government auditing standards 2011. Government auditing standards, also known as the yellow book, provide a framework for conducting high quality audits with competence, integrity, objectivity, and independence. 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. Sep 30, 2019 one of the toughest aspects of doing a yellow book audit is complying with the yellow book cpe requirements. The yellow books 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.
To assist participants in assessing the impact of changes on current practice. A cpa that performs an audit of these organizations must follow gagas in addition to the standards promulgated by the aicpa. The government accountability office gao published a revised version of the generally accepted government auditing standards gagas, also known as the yellow book, which includes substantive changes to the independence rules when a firm performs bookkeeping or financial statement preparation services for a client. And the requirements are a little bit involved so involved that the gao dedicated 17 pages. The government accountability office recently released a new version of government auditing standards, also known as the yellow book. The yellow book is the book of standards and guidance for auditors and audit organizations, outlining the characteristics of good audit reports, professional qualifications continue reading.
Apr 18, 2019 the gao keeps trying to perfect the independence standards because if an auditor is not deemed objective and independent by the users of the audit results, what the auditor says in the audit report is questionable. It outlines the requirements for audit reports, professional qualifications for auditors, and audit organization quality control. Gao releases proposed changes to yellow book auditing. Government auditing standards, commonly known as the yellow book. The 2017 exposure draft is a modernized version of government auditing standards that takes into account developments in the auditing, accountability, and financial management professions. Generally accepted government auditing standards yellow book. For instance, the yellow book performance audit standards require granular documentation and reporting on internal controls. Gao yellow book government auditing standards 2018 revision kindle edition by gao, united states government. Gao government auditing standards 2017 exposure draft. The 2018 revision of government auditing standards supersedes the 2011 revision gao12331g, december 2011, the 2005 government auditing standards. If auditors follow statement on auditing standards no.
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. Government accountability office gao issued a new revision of generally accepted government auditing standards, also known as. Audit organizations may also give auditors who have not completed the 20 hours of cpe in a 1year period up to 2 months immediately following the 1year period to make up the deficiency. These standards help frame both the auditors expectations on the scope of engagement and the agencys expectations when developing the audit contract or agreement. Guidance on gagas requirements for continuing professional education gao 05568g, april 2005, and the 2014 government auditing standards. Gao updates the yellow book, the preeminent standards. Gao yellow book government auditing standards 2018 revision gao, united states government on. Who or what determines whether an audit should be performed under generally accepted government auditing standards the yellow book. Also known as the yellow book, the revision supersedes the 2011 version of the standards.