GAO Issues 2018 Revision of the Government Auditing Standards

July 18, 2018 | By Jerry Ashworth | Post a Comment

seal_2011_12_20After seven years, the Government Accountability Office (GAO) yesterday issued a new revision of the Government Auditing Standards, also known as the “Yellow Book,” which assists government auditors at the federal, state and local levels produce high-quality audits that reflect competence, integrity, objectivity and independence.

We here at Thompson have been tracking the development of the 2018 Yellow Book revision for many months. Some of the key changes to the 2018 Yellow Book include:

  • a new format that differentiates requirements from application guidance;
  • updated independence requirements for auditors who prepare the financial statements of an audited entity;
  • revised peer review requirements for audit organizations;
  • new guidance to address waste and abuse as defined under government auditing standards;
  • and updated internal control guidance for performance audits.

The 2018 revision of the Yellow Book, which supersedes the 2011 revision, is effective for financial audits, attestation engagements and reviews of financial statements for periods ending on or after June 30, 2020, and for performance audits beginning on or after July 1, 2019. Early implementation is not permitted. We will be providing more analysis and insight on the Yellow Book revision at Thompson’s Grants Compliance Expert site and in our Single Audit Information Service. Make sure to check it out!

Let us know your reaction to the new Yellow Book revision. We’d love to hear from you.

 

LinkedInShare

Post a Comment

Your email is never shared. Required fields are marked *

*
*