pdf GAO “Yellow Book” Government Auditing Standards 2024 Revision

The Government Accountability Office GAO “Yellow Book” Government Auditing Standards 2024 Revision.

Government auditing provides the objective analysis and information needed to help improve government performance and accountability for the benefit of the American people. The professional standards presented in Government Auditing Standards 2024 Revision provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence. Such performance provides accountability and helps improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process.

The 2024 revision of Government Auditing Standards contains major changes from, and supersedes, Government Auditing Standards 2018 Revision Technical Update April 2021. Chapter 5, “Quality Management, Engagement Quality Reviews, and Peer Review,” in the 2024 revision replaces chapter 5, “Quality Control and Peer Review,” in the 2018 revision. In addition, application guidance is added to chapter 6, “Standards for Financial Audits,” in this 2024 revision.

Enhancements that strengthen an audit organization’s framework for conducting high-quality government audits through its system of quality management are reflected in the 2024 revision of Government Auditing Standards. An effective system of quality management provides an audit organization with reasonable assurance that it and its personnel fulfill their responsibilities in accordance with professional standards and perform and report on engagements in accordance with such standards and requirements.

This revision emphasizes the responsibility of an audit organization’s leadership for proactively managing quality on its engagements and requires a quality management risk assessment process for designing, implementing, and operating its system of quality management. The 2024 revision also considers that the nature, extent, and formality of an audit organization’s system of quality management will vary based on its circumstances. These include its size, its number of offices and geographic dispersion, the knowledge and experience of its personnel, the nature and complexity of its engagement work, and cost-benefit considerations.