20 -- Government Audits

20 -- Government Audits - CPA AUDITING - STUDY UNIT 20...

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CPA AUDITING - STUDY UNIT 20 Government Audits: Core Concepts A. The Government Accountability Office (GAO) establishes generally accepted government auditing standards (GAGAS) and issues Government Auditing Standards (the Yellow Book). GAGAS pertain to auditors’ professional qualifications and the quality of their work, the performance of field work, and the characteristics of meaningful reporting. 1. GAGAS provide for audits and attestation engagements. Financial audits include financial statement audits . These audits are primarily concerned with whether financial statements are presented fairly in all material respects in conformity with GAAP or with a comprehensive basis of accounting other than GAAP. Other types of financial audits provide different levels of assurance and entail various scopes of work, such as special reports or reviews of interim financial information. Attestation engagements concern examining, reviewing, or performing agreed-upon procedures on a subject matter or an assertion about a subject matter and reporting on the results. They include reporting on an entity’s internal control over financial reporting and on compliance with requirements of laws, regulations, etc. Performance audits include assessing program effectiveness and results, economy and efficiency, internal control, and compliance. 2. The Single Audit Act requires one audit or a program-specific audit of a nonfederal entity that expends a total amount of federal awards equal to or in excess of $500,000. A single audit is required if the entity expends federal awards under more than one federal program. Each federal agency must, with regard to awards provided by that agency, monitor the use of such awards. Moreover, each nonfederal agency must be assigned a single federal agency to assess the quality of audits and provide technical assistance.
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20 -- Government Audits - CPA AUDITING - STUDY UNIT 20...

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