The New Yellow Book

Chapter 1Foundation and Principles for the Use and Application of Government Auditing Standards

Learning objectives

• Recognize why engagements are conducted in accordance with generally accepted government auditing standards (GAGAS or Yellow Book).
• Recall revisions brought about by the 2018 revision to GAGAS.
• Identify the types of engagements that may be conducted under GAGAS.

What is GAGAS?

Generally accepted government auditing standards (GAGAS), issued by the U.S. Government Accountability Office (GAO), provide a framework of audit and attest standards for use by auditors of government entities, functions, activities, and programs, as well as for government assistance administered by nonfederal entities. GAGAS provides the foundation for auditors to lead by example in areas of independence, transparency, accountability, and quality through the audit process. The standards provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence with the overall objective of providing accountability and helping improve government operations and services.

Known widely as the “Yellow Book,” GAGAS aids the auditing process in four ways.

In this course, the terms GAS, GAGAS, and Yellow Book are used interchangeably.

Brief history of Government Auditing Standards

Beginning in the mid-1960s, both the number and the dollar amount ...