GAO revises Yellow Book for first time since 2011
Washington, D.C. — The Government Accountability Office released an updated edition of the so-called “Yellow Book” on Generally Accepted Government Auditing Standards, the first revision since 2011.
The Yellow Book is used by government auditors at the federal, state and local levels. One of the main changes in the latest edition is a new format that distinguishes requirements from application guidance. The book also includes updated independence requirements for auditors who prepare the financial statements of audited entities, along with revised peer review requirements for audit organizations. There’s also new guidance to address waste and abuse as defined under government auditing standards, as well as updated internal control guidance for performance audits.
To make sure the new standards meet the needs of government auditors, U.S. Comptroller General Gene Dodaro, who heads the GAO, set up an advisory council to review the proposed changes. The new edition reflects the advisory council’s feedback, along with suggestions received during a public comment period.
NASBA and AICPA sign pact with CPA Australia
New York — The National Association of State Boards of Accountancy and the American Institute of CPAS’ U.S. International Qualifications Appraisal Board have signed a mutual recognition agreement with CPA Australia.
The agreement will offer an abbreviated qualification pathway for eligible accounting professionals in the U.S., Australia and New Zealand to practice in the partner countries. Under the deal, qualified U.S. CPAS will be eligible to obtain the CPA Australia credential, which is a pathway to getting audit rights in Australia and New Zealand, if the holders meet specific eligibility requirements.