Government Auditing Standards (The Yellow Book)
What's New
Government Auditing Standards, July 2007 Revision (GAO-07-731G)On July 27, 2007, the Comptroller General of the United States issued the 2007 revision of Government Auditing Standards, which supersedes the 2003 revision and updates the January 2007 revision. The July 2007 version contains the January 2007 revision to the standards and updates the quality control and peer review sections in chapter 3.
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-03-273G, October 2002) This document provides useful guidance in implementing the data reliability requirements in GAGAS. Specifically, it provides a risk-based framework for data reliability assessments that can be geared to the specific circumstances of each audit. It does not carry the authoritative status of a standard, and is intended to provide helpful guidance in designing and implementing audits.
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 11/18/2008
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