Yellow book definition
/What is the Yellow Book?
The Yellow Book contains the complete set of Generally Accepted Government Auditing Standards. The document provides users with a framework for the conduct of audits of all types of government entities and entities that have received awards and grants from the government. The types of audits discussed in the book include attestation engagements, financial audits, and performance audits.
The Yellow Book name is derived from the yellow cover of the document.
Who Uses the Yellow Book?
Users of the Yellow Book are primarily CPAs and government auditors. They use the auditing guidelines contained within the book as the basis for a variety of audit types.
When was the Yellow Book Released?
The Yellow Book is released annually by the Government Accountability Office (GAO). The most recent major update was in 2018, with only technical updates having been added to it since then.
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FAQs
Is Compliance With the Yellow Book Mandatory?
Compliance with the Yellow Book is mandatory when audits are required by law, regulation, or contract to follow Generally Accepted Government Auditing Standards (GAGAS). In such cases, auditors must adhere to all applicable Yellow Book requirements. For other audits, following the Yellow Book is voluntary but may be adopted to enhance credibility and transparency.