Governmental Accounting and Auditing Update

Chapter 3Federal Government Activities

Learning objectives

• Recognize key changes found in Government Audtiting Standards, 2018 Revision.
• Identify the role of the Compliance Supplement in a Uniform Guidance compliance audit.
• Identify and apply guidance found in the Uniform Guidance.
• Recognize proposed changes to the Uniform Guidance.

Government Auditing Standards, 2018 Revision

In July 2018, the U.S. Government Accountability Office (GAO) issued Government Auditing Standards, 2018 Revision (2018 revision). Upon its effective date, the 2018 revision will supersede the Government Auditing Standards, 2011 Revision. The effective date of the 2018 revision is 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. Therefore, the first full fiscal year audits performed under the 2018 revision will be for June 30, 2020, year-ends. Access to the 2018 revision is available on the GAO website at www.gao.gov/yellowbook/overview. Key changes found in the 2018 revision follow.

Format and organization. One important change relates to the format and organization of the content. The 2018 revision presents all requirements within a box, with the application guidance following. This allows for clear identification of the requirements versus application guidance. Furthermore, two chapters were added and content within chapters has been reorganized. Application ...