Government auditing standards and standards for internal control in the federal government. 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. At this time, there are no amendments or interpretive guidance for the 2018 revision of government auditing standards. An independent public accountant conducting an audit of. The standards apply to both financial and performance audits of government agencies. Gao invites comments on the proposed changes to government auditing standards, commonly known as the yellow book. In july 2007, the gao issued an omnibus revision to 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 yellow book is the book of standards and guidance for auditors and audit organizations, outlining the characteristics of good audit reports, professional qualifications.
In the yellow book gagas gaos recommendations are effective when the. The yellow book compliance report is designed as a 2year cpe period. Since 1972, gao has produced and maintained government auditing standards, also known as the yellow book. In december 2011, the gao issued the government auditing standards 2011. To help aicpa members comply with the aicpa and yellow book standards, this document. The yellow book s standards and guidance for auditors. The watchblog offers short, shareable insights from gao reports on a wide variety of topics. Have you heard that crazy rumor that the gao certifies auditors to conduct yellow book audits. Government accountability office s generally accepted government auditing standards yellow book. Ive had a few months to digest the changes to the 2018 yellow book government auditing standards,and ive taught a few seminars and webinars about the changes.
And if you prepare financial statements in a yellow book audit, you need to be. Most internal auditors have a designation from the iia like a cia or cgap and would prefer to follow the red book if given a chance. This guidance covers computerprocessed data, referred to in this document. The 2011 revision should be used by government auditors until further updates and revisions are made. The red book provides text discussion with reference to specific legal authorities to illustrate legal principles, their application, and exceptions. Coming this summer, a revised yellow book accounting and tax. Often called the congressional watchdog, gao investigates federal spending and performance. Check out the yellow book bundle available from yellowbookcpe. Going gagas for the gao yellow book government book talk. How to cite gao reports in apa format pen and the pad.
Gaogreen book, gao yellow book will the government accountability office gao never cease creating books with colored covers. Blending the green book with the yellow book yellowbook. The gao green book s formal title is standards for internal controls in the federal government. This is not good because the green book is by far the biggest change to the yellow book. 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.
The revised version has been reorganized and realigned with the aim of making it easier for professionals to find relevant rules when performing research. Last revised in 2011, the yellow book is designed to. The gao has a few things to say about a government auditors ethical responsibilities and, thus, added a large section on ethics to the 2007 revision of the yellow book. Gao government auditing standards update the new yellow book c h r i s t i n e h a r d e n, m b a, c p a, c g m a f e b r u a r y 5, 2 0 1 9 2 0 1 9 g f o a a 3 5 th a n n u a l c o n f e r e n c e. Where can gao field work standards and reporting standards be found. 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. In april 2017, the gao released an exposure draft for a revised yellow book a. Government auditors are required to objectively evaluate government operations, gather sufficient, appropriate evidence, and report the result. How the yellow books new independence standards impact.
These standards, commonly referred to as generally accepted government auditing. Posts about yellow book advisory council written by watchblog watchblog. Also known as the yellow book, the revision supersedes the 2011 version of the standards. To do this, auditors rely on these standards to provide a framework for conducting highquality audits with competence, integrity, objectivity, and. Gao updates yellow book, the preeminent standards for government auditing.
Gao updates yellow book standards for government auditing. The web page indicates that hard copies of the standards can be purchased through the government publishing office and provides ordering information. 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. From my understanding, the institute of internal auditors doesnt work very closely with the gao and it shows in the resulting yellow book standards. Gao provides factbased, nonpartisan information to congress. Auditors anticipate the yellow book revision expected issue date. The gao s green book video course includes an online video and self study e book for 2 hours of cpe credit the gao green book sets standards for internal controls that align with the most popular control model in the united states, the coso model. The same ethical principles appear in the 2017 exposure draft. The most important change to the yellow book is the green. Government accountability office serves as an independent organization that tracks federal government spending. What makes internal auditors mad about the yellow book. The 2011 revision of government auditing standards supersedes the 2007 revision. To what level of government does the yellow book pertain. Controls designed objective achieved objective identified controls in place.
Posts about yellow book training written by watchblog. It outlines the requirements for audit reports, professional qualifications for auditors, and audit organization quality control. Government auditing standards which defines generally accepted government auditing standards gagas, and supersedes gao s 2009 guidance, assessing the reliability of computerprocessed data. There is no formal preapproval process for the mncpa or any other sponsor to qualify a course for yellow book credit. The name yellow book to many conjures memories of big yellow phone directories used with rotary dial phones. Standards for internal control in the federal government, known as the green book, sets internal control standards for federal entities. The gao has been working for the last decade trying to clarify and strengthen the auditor independence standards to mixed success. Many auditors of federal, state, and local government programs. A rule, regulation, contract, or law calls the yellow book into play, and there is nothing they can do about it. The 2018 yellow book can be accessed on the gao s yellow book web page in a pdf format. These standards help frame both the auditors expectations on the scope of engagement and the agencys. Principles of federal appropriations law, also known as the red book, is gao s multivolume treatise concerning federal fiscal law. Last revised in 2011, the yellow book is designed to help government auditors at the federal, state, and local levels produce highquality audits. Gao issues revised yellow book standards for government.
Update on the developments in government auditing standards. Gao government auditing standards 2017 exposure draft. The sixth edition of publication manual of the american psychological association provides format guidelines for citing material from governmentrelated agencies such as the gao. But before you take a yellow book audit on, i recommend that you do five things.
The government accountability office recently released a new version of government auditing standards, also known as the yellow book. The yellow book is used by auditors of government entities, entities that receive government awards, and other audit organizations performing yellow book audits. The 2018 yellow book can be accessed on the gao yellow book web page. Yellow book continuing education requirements are governed by the u. Next thing you know, it will come out with a purple book. Do you want to learn more about the gao s yellow book. And aicpa standards are designed for external auditors. On behalf of more than 190,000 global members of the institute of. Where to find the yellow book the yellow book is available on gao s website at.
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. New gao yellow book clarifies independence requirements. However, when we clicked on the purchase link it linked to ordering information for the 2011 yellow book. Gao received 95 comment letters with over 1,700 individual comments on the exposure draft. This guide is consistent with the yellow book the 2018.
Government accountability office gao provides factbased, nonpartisan information to. But i am noticing that quite a few auditors are not familiar with the green book which was published by the gao in 2014. Gao issues revised yellow book standards for government auditors. As i am traveling and teaching the 2018 yellow book, i have noticed that quite a few auditors are not familiar with the green book which was published by the gao in 2014. 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 purpose of the red book yellow book comparison is to identify similar principles and key differences between the iias ippf red book and the u. Exposure draft was issued for public comment on april 5, 2017.
Last revised in 2011, the yellow book is designed to help government auditors at the federal, state and local levels produce highquality audits. Aicpa yellow book gagas independence rules comparison 2. 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. Also known as the yellow book, the revision supersedes the 2011 revision of the standards. Summary of key changes 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. Give overview and purpose of the gao s yellow book 2. Generally accepted government auditing standards yellow. Yellow book revision process exposure draft was issued for public comment on april 5, 2017. One yellow book hour 50 minutes equivalent to a cpe hour. 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. Auditors of federal, state, and local government programs use these standards to perform their audits and produce their reports. 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. Themes of gagas gagas is a very highminded document.
Effective for financial audit periods ending on or after december 15, 2012. Effective with the implementation dates for the 2018 revision of the yellow book, the gao is retiring government auditing standards. Government auditing standards yellow book practice aids. After an april 10th gao advisory council meeting, it appears that a proposal that would have required auditors to take a 4hour cpe course on. Guidance on gagas requirements for continuing professional education and government auditing standards. Gao from yellow to green aga nashville april 5, 20 james dalkin.