The New Yellow Book

Solutions

Chapter 1

Knowledge check solutions

1.  
   1. Incorrect. GAGAS may apply due to contractual requirements.
   2. Incorrect. A GAGAS audit may be required due to regulatory requirements.
   3. Incorrect. A GAGAS audit may be performed voluntarily.
   4. Correct. GAAS has no provisions that would require a GAGAS audit.
2.  
   1. Correct. An actuary engaged by an audit team to assist in the performance of an engagement subject to GAGAS does not meet the definition of an auditor under GAGAS.
   2. Incorrect. An engagement partner responsible for planning a performance audit conducted in accordance with GAGAS meets the definition of auditor.
   3. Incorrect. A federal internal inspector who reports on investigations related to the programs and operations of the federal agency meets the definition of auditor.
   4. Incorrect. A staff person performing agreed-upon procedures over a contract that is required to be conducted in accordance with the Yellow Book meets the definition of an auditor.

Chapter 2

Knowledge check solutions

1.  
   1. Incorrect. Application guidance is not indicated by font color.
   2. Correct. Application guidance may contain various pieces of information regarding requirements, including further explanation of the requirement.
   3. Incorrect. GAGAS states that the auditor should understand both the requirements and application guidance in order to understand the intent of a requirements and to apply the requirement properly.
   4. Incorrect. Application guidance is found immediately after the related requirement. ...