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.

NEWS

IRS sets start date for tax season

The IRS announced that tax season will start in late January and that it will issue refunds to taxpayers despite the partial shutdown of the federal government.

PODCAST

Why CPAs can’t wait on automation tools

What do accounting firms waiting on others to develop AI, automation, and data analytics tools have in common with a baseball fan sitting in a stadium filling with water at an exponential rate? The answer could determine your firm’s fate.