Government Auditing Standards (The Yellow Book)
What's New
Government Auditing Standards, Government Auditing Standards, 2010 Exposure Draft (GAO-10-853G, August 2010)
The draft of the proposed changes to Government Auditing Standards, 2010 Exposure Draft is only available in an electronic format: PDF (210 pages) Accessible Text
The proposed revision to GAGAS will be the sixth since GAO first issued the standards in 1972. The proposed changes contained in the 2010 Exposure Draft update GAGAS to reflect major developments in the accountability and audit profession and emphasize specific considerations applicable to the government environment. A summary of major changes in the proposed revision is included as enclosure 1 to the transmittal letter.
We are requesting comments on this draft from audit officials and financial management at all levels of government, the public accounting profession, academia, professional organizations, public interest groups, and other interested parties. To assist you in developing your comments, specific issues are presented in enclosure 2 to the transmittal letter. We encourage you to comment on these issues and any additional issues that you note. Please associate your comments with specific references to question numbers in the enclosure and/or paragraph numbers in the proposed standards and provide your rationale for any suggested changes, along with suggested revised language. Please send your comments electronically to yellowbook@gao.gov no later than November 22, 2010.
If you need additional information please call Michael Hrapsky at (202) 512-9535 or e-mail yellowbook@gao.gov.
Notice announcing issuance of the July 2007 revision
Government
Auditing Standards, July 2007 Revision (GAO-07-731G)
Electronic version
PDF (225 Pages ) HTML
Accessible Text
Contact information
Ordering Information: The
printed version of the July 2007 revision of Government Auditing Standards can be ordered
through the Government Printing
Office (GPO) online or by calling 202-512-1800 or 1-866-512-1800 toll
free.
Summary of Major Changes/Listing of Technical Changes GAO has issued a listing of major changes in the July 2007 revision of Government Auditing Standards. This listing highlights key revisions overall and related to (1) ethics and independence, (2) professional judgment and competence, (3) quality control and assurance (5) all types of GAGAS audits and attestation engagements, (5) internal auditors, (6) financial audits, (7) attestation engagements, (8) performance audits, and (9) guidance material. The listing of changes is intended to assist government audit organizations and practitioners in updating their related policies and procedures for conducting government audits. GAO has also issued a listing of technical changes made since the January 2007 revision.
Effective Dates The effective date for the July 2007 revision of Government Auditing Standards is for financial audits and attestation engagements for periods beginning on or after January 1, 2008, and for performance audits beginning on or after January 1, 2008. Early implementation is permissible and encouraged.
Certain standards issued by the AICPA's Auditing Standards Board (ASB) have
earlier effective dates. For financial statement audits performed under
GAGAS, the effective dates of those new ASB standards will apply. Until
the July 2007 GAGAS revisions become effective, auditors should adopt the terminology
and definitions in SAS No. 112 when reporting on internal control deficiencies
and include in their reports material weaknesses and other significant deficiencies
in order to promote consistency in communicating and reporting on internal
control deficiencies.
Professional Requirements Tool
The professional requirements tool lists the requirements for audit organizations
and auditors included in the July 2007 revision of Government Auditing Standards by specifically
identifying in the standards the words "must" and "should."
Notice announcing the issuance of the professional
requirements tool
Updated Comprehensive Slide Set
GAO has issued an updated comprehensive set of annotated slides to assist the
government audit community in developing training on the July 2007 revision of Government Auditing Standards. In
addition to highlighting the major revisions, the slides contain information
about the process used to issue the July 2007 Yellow Book, the reasons for
the changes, what the changes will mean for government auditors, and effective
dates.
The slides should be used in conjunction with the summary of major changes
and the complete text of the July 2007 revision.
Electronic versions of these documents can be accessed above.
July 2007 Full-page slides Annotated version with speaker's notes (July
2007 revision)
For further information, please call Michael Hrapsky at (202) 512-9535 or e-mail yellowbook@gao.gov.
Related Guidance that Accompanies Government Auditing Standards
Government Auditing Standards: Guidance on GAGAS Requirements for Continuing Professional Education (GAO-05-568G, April 2005) This guidance document, which replaces the April 1991 document entitled Interpretation of Continuing Education and Training Requirements, is effective for CPE measurement periods beginning on or after June 30, 2005, with earlier adoption encouraged. (Note: This document is only available electronically.)
Government Auditing Standards: Answers to Independence Standard Questions (GAO-02-870G, July 2002)
The paragraph references in Government
Auditing Standards: Answers to Independence Standard Questions are
based on the January 2002 Government Auditing
Standards: Amendment No. 3 Independence (GAO-02-388G).
In July 2007, GAO issued Government Auditing Standards: July 2007
Revision (GAO-07-731G). This document provides corresponding paragraph
references in the 2007 revision.
Other Related Materials
Interim Guidance on Reporting Deficiencies in Internal Control for GAGAS Financial Audits and Attestation Engagements (November 2008)Professional Standards Updates summarize recently-issued standards of major auditing and accounting standard-setting bodies in order to inform GAO staff and other users of important changes to professional requirements. These Updates, however do not establish new professional standards and do not reflect GAO official views on these requirements. Users should refer to the original, authoritative standards for purposes of implementing the standards.
The Comptroller General of the United States has issued temporary exemptions from certain provisions of the 2003 revision of Government Auditing Standards (GAO-03-763G, June 2003) for auditors and audit organizations impacted by Hurricanes Katrina and Rita and has provided additional guidance to auditors to protect the public interest related to government spending of public funds in the relief effort. (December 15, 2005)
Standards for Internal Control in the Federal Government (GAO/AIMD-00-21.3.1, November 1999) [Available only in PDF version]
Internal Control Management and Evaluation Tool (GAO-01-1008G, August 2001)
Assessing the Reliability of Computer-Processed Data (GAO-09-680G July 2009) This publication supersedes GAO-03-273G, Assessing the Reliability of Computer-Processed Data, October 2002. GAO published a guide to assist auditing staff in ensuring the reliability of computer-based data. The guidance provides a flexible, risk-based framework for data reliability assessments that can be geared to the specific circumstances of each engagement. The framework is built on (1) making use of all existing information about the data; (2) performing at least a minimal level of data testing; (3) doing only the amount of work necessary to determine whether the data are reliable enough for GAO's purposes; (4) maximizing professional judgment; and (5) bringing the appropriate people, including management, to the table at key decision points. The guide does not carry the authoritative status of a standard and is intended to provide helpful guidance in designing and implementing audits. Full Report (PDF, 59 pages) Accessible Text
Advisory Council on Government Auditing Standards
GAO Advisories Related to Government Auditing Standards
GAO Comment Letters on Recent Exposure Drafts Issued
by Other Auditing Standard Setting
Organizations
Government Auditing Standards -- Previous Revisions
January 2007 Revision Government Auditing Standards, January 2007 Revision (GAO-07-162G) Available in electronic version only
2003 Revision Government Auditing Standards, 2003 Revision, GAO-03-673G, June 2003. This revision supersedes the 1994 revision, including Amendments 1 through 3. The new standards became effective for financial audits and attestation engagements of periods ending on or after January 1, 2004, and for performance audits beginning on or after January 1, 2004.
PDF (202 Pages) HTML Accessible Text
The Comptroller General has issued a technical amendment to the CPE requirements contained in the 2003 revision of Government Auditing Standards (April 2005)
Last updated August 26, 2010
About Government Auditing Standards
Government Auditing Standards (the "Yellow Book") contains standards for audits of government organizations, programs, activities, and functions, and of government assistance received by contractors, nonprofit organizations, and other nongovernment organizations. These standards, often referred to as generally accepted government auditing standards (GAGAS), are to be followed by auditors and audit organizations when required by law, regulation, agreement, contract, or policy. These standards pertain to auditors' professional qualifications, the quality of audit effort, and the characteristics of professional and meaningful audit reports.
To help ensure that Government Auditing Standards (the "Yellow Book") continues to meet the needs of the audit community and the public it serves, the Comptroller General of the United States appointed the Advisory Council on Government Auditing Standards to review the standards and recommend necessary changes. The Council includes experts in financial and performance auditing drawn from all levels of government, private enterprise, public accounting, and academia. In February 1997, the Advisory Council on Government Auditing Standards endorsed a revised approach of issuing individual standards issue-by-issue. The approach will continue the practice of exposing all revisions for public comment as the Council reaches consensus on a particular issue. The Council will consider those comments in making recommendations to the Comptroller General of the United States in finalizing revisions to the standards. When the Comptroller General issues a revised standard, the electronic version of Government Auditing Standards will be immediately codified, with a periodic codification of the standards into the printed book format. This revised approach was adopted in order to provide more timely revision of the standards for emerging audit issues.
Contact Information
For technical or practice questions regarding Government Auditing Standards call:Michael C. Hrapsky
Manager, GAGAS Technical Assistance
U.S. Government Accountability Office
(202) 512-9535
For technical or practice questions directly related to Government Auditing Standards, our e-mail address is: yellowbook@gao.gov