February 5, 2007

ETA REGIONAL INFORMATION ALERT NO. 046-07

ORIGINATING OFFICE:  Region 5

SUBJECT:  Notice -Government Auditing Standards, January 2007 Revision (GAO-07-162G)

PROGRAMS: All Programs

1.  Purpose. To transmit notice of issuance of the 2007 revision of Government Auditing Standards, which supersedes the 2003 revision.

2.  References. Government Auditing Standards, January 2007 Revision  (GAO-07-162G)

3.  Links. This Alert is in the Regional website Resource page at: http://www.doleta.gov/regions/regionalresources/

4.  Substance. The January 2007 version contains the final 2007 revisions to the standards, except for the quality control and peer review sections in chapter 3. Concurrent with the electronic issuance of this revision of Government Auditing Standards, GAO is exposing for comment redrafted sections on quality control and peer review in response to the wide range of comments it received on those sections. The printed version of the complete 2007 revision of Government Auditing Standards will be available after the quality assurance and peer review sections are finalized and incorporated into the standards. The current anticipated time frame is late Spring 2007.

5.  Action. The effective date for implementing the 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 American Institute of Certified Public Accountant's (AICPA) Auditing Standards Board (ASB) have earlier effective dates.  For financial statement audits performed under generally accepted government auditing standards (GAGAS), the effective dates of those new ASB standards will apply.  Until the 2007 GAGAS revisions become effective, auditors should adopt the terminology and definitions in the Statement on Auditing Standards (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.

Program administrators are invited to share this Information Alert with appropriate staff and other agencies.

6. Contact.Questions and comments about this Alert may be directed to the Division of Financial Management and Administrative Services in your Regional Office:

Region 1 Boston - 617.788.0170
Region 2 Philadelphia - 215.861.5200
Region 3 Atlanta - 404.562.2092
Region 4 Dallas - 214.767.8263
Region 5 Chicago - 312.596.5400
Region 6 San Francisco - 415.975.4610

Questions or comments about the format of this Alert may be directed to Robert Rainault on 312.596.5416.

7. Expiration Date.Continuing

8. Attachment.Government Auditing Standards, January 2007 Revision (GAO-07-162G)