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.
