Government Auditing

The GAO issues a series of questions and answers ( www.gao.gov/govaud/d02870g.pdf ) to clarify the revised yellow-book auditor independence standard it released in January. Recognizing the amendment’s broad scope and the time necessary to implement it, the watchdog agency extends its effective date. The new standard applies to all audits of government financial statements, programs and operations for periods beginning on or after January 1, 2003.

GASB issues an exposure draft, Deposit and Investment Risk Disclosures, to give the public better information about risks that could affect a government’s ability to provide services and pay its debts ( www.gasb.org/news/nr070102.html ). The ED would amend GASB Statement no. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements. The proposed standard is the first step in GASB’s effort to strengthen current disclosure requirements so interested parties have access to risk-related information on state and local governments’ investments, deposit accounts, credit sources and debt obligations. When final, the standard will apply to fiscal years beginning after June 15, 2004. The ED is available from GASB at 800-748-0659. Comments are due September 27.