The Generally Accepted Governmental Auditing Standards, also known as the Yellow Book, provides a comprehensive framework for conducting governmental audits with a focus on high quality, integrity, competence, independence, and objectivity. The Yellow Book is used by auditors of government organizations, entities that receive government awards, and any other audit organization performing Yellow Book audits. The Yellow Book outlines all requirements for governmental audit reports, professional qualifications for auditors, and audit organization quality control.
This course will describe when the Yellow Book standards must be applied. This course will identify the categories of requirements that GAGAS uses to describe the degree of responsibility imposed on auditors and audit organizations. This course will identify the ethical principles that guide the work of auditors who conduct engagements in accordance with GAGAS. Finally, this course will identify the individuals that have a role on an audit engagement.
At the end of this chapter, the student will be able to:
- Recognize when the Yellow Book standards must be applied.
- Identify the new organization and format of the 2018 Yellow Book.
- Recognize the five areas that changed in the 2018 Yellow Book from the 2011 Yellow Book.
CPE Credit: 3 CPE for CPAs
Instructional Method: Self-Study
NASBA Field of Study: Auditing
Program Prerequisites: Basic understanding of the auditing process.
Advanced Preparation: None
Revision Date: March 23, 2023