GAO proposes revisions to government auditing standards

The topics include competence, CPE, independence, quality control, and internal control.

Multiple requirements in Government Auditing Standards would change under revisions proposed by the U.S. Government Accountability Office (GAO).

Auditors of governmental entities and auditors performing compliance audits of entities expending federal assistance or participating in federal programs are often required to perform those audits under Government Auditing Standards.

The proposed changes to the standards commonly known as the Yellow Book are designed to reflect major developments in the auditing, accountability, and financial management professions, emphasizing specific considerations that apply to the government environment.

Key proposed changes include:

  • A new format that would differentiate requirements from application guidance.
  • Updated internal control requirements and guidance.
  • Revised continuing professional educational requirements with the intention of improving auditors' proficiency with Generally Accepted Government Auditing Standards.
  • Revised peer review requirements that also comply with peer review requirements of affiliated organizations.
  • New requirements for reporting waste that is detected during an audit.

The GAO invites public comment on the exposure draft through July 6 at YellowBookComments@gao.gov.

SPONSORED QUIZ

How well do you know small business?

There are over 30 million small businesses in the U.S., and many of them are optimistic in their outlook. Are you familiar with the obstacles and opportunities they are facing? Test your small business acumen with this quiz sponsored by Chase Ink®.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income, the higher standard deduction, and the cap on the deductibility of state and local taxes.