After studying this chapter you should understand:
The theme of the previous chapter is that government and not-for-profit organizations must be managed to achieve their objectives. By extension, therefore, their performance must also be evaluated as to whether they achieved these objectives. In this chapter we consider how governments and not-for-profit organizations are audited—how their accomplishments are attested to and reported upon.
Whereas in the development of financial auditing standards and practices the independent public accounting profession has played the leadership role, in the areas of reporting on compliance and assessing performance, the government and not-for-profit sectors have been at the forefront of progress. The advances in compliance ...