Government Auditing Standards 2018 Revision Technical Update April 2021

Government Auditing Standards 2018 Revision Technical Update April 2021
Title:
Government Auditing Standards 2018 Revision Technical Update April 2021
Format:
Paperback
USA Price: 
Stock:
In stock
GPO Stock Number:
020-000-00294-8
ISBN:
9780160955594
Description

Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process.

This revision contains major changes from, and supersedes, the 2011 revision. These changes, summarized below, reinforce the principles of transparency and accountability and strengthen the framework for high-quality government audits. ·

  • All chapters are presented in a revised format that differentiates requirements and application guidance related to those requirements. ·
  • Supplemental guidance from the appendix of the 2011 revision is either removed or incorporated into the individual chapters. ·
  • The independence standard is expanded to state that preparing financial statements from a client-provided trial balance or underlying accounting records generally creates significant threats to auditors’ independence, and auditors should document the threats and safeguards applied to eliminate and reduce threats to an acceptable level or decline to perform the service. ·
  • The peer review standard is modified to require that audit organizations comply with their respective affiliated organization’s peer review requirements and GAGAS peer review requirements. Additional requirements are provided for audit organizations not affiliated with recognized organizations. ·
  • The standards include a definition for waste. ·
  • The performance audit standards are updated with specific considerations for when internal control is significant to the audit objectives.
Table of Contents

Contents Letter 1

Chapter 1:

Foundation and Principles for the Use and Application of Government Auditing Standards 3

Introduction 3 Types of GAGAS Users 6 Types of GAGAS Engagements 7

Financial Audits 8

Attestation Engagements and Reviews of Financial Statements 10

Performance Audits 11 Terms Used in GAGAS 16

The GAGAS Format 17

Chapter 2:

General Requirements for Complying with Government Auditing Standards 19

Complying with GAGAS 19

Relationship between GAGAS and Other Professional Standards 21

Stating Compliance with GAGAS in the Audit Report 23

Chapter 3:

Ethics, Independence, and Professional Judgment 26

Ethical Principles 26

The Public Interest 27

Integrity 28

Objectivity 28

Proper Use of Government Information, Resources, and Positions 29

Professional Behavior 29

Independence 30

GAGAS Conceptual Framework Approach to Independence 32

Provision of Nonaudit Services to Audited Entities 45

Consideration of Specific Nonaudit Services 52

Documentation 59 Professional Judgment 60

Chapter 4:

Competence and Continuing Professional Education 68

Competence 68

Continuing Professional Education 73

Chapter 5:

Quality Control and Peer Review 87

Quality Control and Assurance 87

System of Quality Control 88

Leadership Responsibilities for Quality within the Audit Organization 88

Government Auditing Standards Independence, Legal, and Ethical Requirements 89

Initiation, Acceptance, and Continuance of Engagements 90

Human Resources 91 Engagement Performance 92

Monitoring of Quality 97

External Peer Review 102

Additional Requirements for Audit Organizations Not Affiliated with Recognized Organizations 109

Chapter 6:

Standards for Financial Audits 117

Additional GAGAS Requirements for Conducting Financial Audits 117

Compliance with Standards 117

Licensing and Certification 118

Auditor Communication 119

Results of Previous Engagements 120

Investigations or Legal Proceedings 120

Noncompliance with Provisions of Laws, Regulations, Contracts, and Grant Agreements 121 Findings 122

Audit Documentation 125

Availability of Individuals and Documentation 125

Additional GAGAS Requirements for Reporting on Financial Audits 126

Reporting the Auditors’ Compliance with GAGAS 126

Reporting on Internal Control; Compliance with Provisions of Laws, Regulations, Contracts, and Grant Agreements; and Instances of Fraud 127

Presenting Findings in the Audit Report 129

Reporting Findings Directly to Parties outside the Audited Entity 130

Obtaining and Reporting the Views of Responsible Officials 131

Reporting Confidential or Sensitive Information 133

Distributing Reports 134

Chapter 7:

Standards for Attestation Engagements and Reviews of Financial Statements 136

Examination Engagements 137

Compliance with Standards 137

Licensing and Certification 138

Auditor Communication 138

Results of Previous Engagements 139

Investigations or Legal Proceedings 140

Noncompliance with Provisions of Laws, Regulations, Contracts, and Grant Agreements 141 Findings 141

Page v GAO-21-368G Government Auditing Standards Examination Engagement Documentation 144

Availability of Individuals and Documentation 145

Reporting the Auditors’ Compliance with GAGAS 146

Reporting Deficiencies in Internal Control 147

Reporting on Noncompliance with Provisions of Laws, Regulations, Contracts, & Grant Agreements or Instances of Fraud 147

Presenting Findings in the Report 148

Reporting Findings Directly to Parties outside the Audited Entity 149

Obtaining and Reporting the Views of Responsible Officials 150

Reporting Confidential or Sensitive Information 152

Distributing Reports 153

Review Engagements 154

Compliance with Standards 154

Licensing and Certification 155

Noncompliance with Provisions of Laws, Regulations, Contracts, & Grant Agreements 155

Reporting Auditors’ Compliance with GAGAS 155

Distributing Reports 156

Agreed-Upon Procedures Engagements 157

Compliance with Standards 157

Licensing and Certification 157

Noncompliance with Provisions of Laws, Regulations, Contracts, & Grant Agreements 158

Reporting Auditors’ Compliance with GAGAS 158

Distributing Reports 160

Reviews of Financial Statements 160

Compliance with Standards 160

Licensing and Certification 161

Noncompliance with Provisions of Laws, Regulations, Contracts, & Grant Agreements 161

Reporting Auditors’ Compliance with GAGAS 162

Distributing Reports 163

Chapter 8:

Fieldwork Standards for Performance Audits 164

Planning 164 Auditor Communication 168 Investigations or Legal Proceedings 169

Results of Previous Engagements 170

Assigning Auditors 171

Preparing a Written Audit Plan 171

Conducting the Engagement 172

Nature and Profile of the Program and User Needs 172

Page vi GAO-21-368G

Government Auditing Standards Determining Significance and Obtaining an Understanding of Internal Control 175

Assessing Internal Control 179

Internal Control Deficiencies Considerations 180

Information Systems Controls Considerations 182

Provisions of Laws, Regulations, Contracts, and Grant Agreements 185

Fraud 186

Identifying Sources of Evidence and the Amount and Type of Evidence Required 188

Using the Work of Others 188 Supervision 190

Evidence 190

Overall Assessment of Evidence 196

Findings 198

Audit Documentation 201

Availability of Individuals and Documentation 203

Chapter 9:

Reporting Standards for Performance Audits 206

Reporting Auditors’ Compliance with GAGAS 206

Report Format 207 Report Content 208

Reporting Findings, Conclusions, and Recommendations 212

Reporting on Internal Control 214

Reporting on Noncompliance with Provisions of Laws, Regulations, Contracts, and Grant Agreements 215

Reporting on Instances of Fraud 216

Reporting Findings Directly to Parties outside the Audited Entity 217

Obtaining the Views of Responsible Officials 219

Report Distribution 220 Reporting Confidential or Sensitive Information 221

Discovery of Insufficient Evidence after Report Release 223

Glossary 224 Acknowledgments 235

Comptroller General’s Advisory Council on Government Auditing Standards (2016-2020) 235 GAO Project Team 236

Staff Acknowledgments 236

Audience

These standards are for use by auditors of government entities and entities that receive government awards and audit organizations performing GAGAS audits and attestation engagements.

Product Details

Availability Details:
In Stock
USA Price:
$14.00
International Price:
$19.60
Publisher:
United States Government Accountability Office
Key Phrases:
  • Standards
  • Accounting
  • Auditing
Weight:
1.5
Quantity Price:
Discount
Cover:
Paper
Unit of Issue (US):
1
Unit of Issue (Non-US):
1
Record Creation Date:
05/19/2021
Last Status Update:
08/26/2021
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