What is Government Auditing Standards (Yellow Book)?
In short
Government Auditing Standards, known as the Yellow Book, are issued by the US Government Accountability Office and apply to audits of government entities and of organizations that receive government funding when required by law, regulation or agreement.
Key takeaways
- They add requirements to generally accepted auditing standards, such as reporting on internal control and compliance.
- They have their own independence rules and continuing professional education requirements.
- Single audits are performed under them.
Where it's tested
AUD: Professional Ethics & Independence — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An audit senior on the engagement team owns 10 shares of the audit client's common stock, worth approximately $300. What is the effect on independence?