Yellow Book (Auditing Standards) - Explained
What is the Yellow Book?
Written by J. Mance Gordon
Updated at April 18th, 2024
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What is the Yellow Book?
The Yellow Book, formally the Generally Accepted Government Auditing Standards (GAGAS), is the name given to the standards promulgated by the Comptroller General (of the Government Accountability Office) for carrying out financial audits of government organizations or programs and business entities that receive financial assistance from the federal government.
How is the Yellow Book Used?
The Yellow Book provides standards for carrying out both financial and performance audits. Performance audits concern evaluating a program or project to determine whether it is meeting efficiency our outcome standards. The five standards contained in the manual include:
- Independence of the Auditor
- Due Care in Carrying Out the Audit
- Requirements for Continued Professional Education for Auditors
- Supervision of Auditors
- Quality Control Standards
The Yellow Book is used by private and public auditors (including the Government Accountability Office, the Inspector Generals Office, and many state and local government auditors).
Organization of the Yellow Book
Chapter 1 Government Auditing: Foundation and Principles for the Use and Application of Generally Accepted Government Auditing Standards Chapter 2 - General Requirements for Complying with Government Auditing Standards Chapter 3 Ethics, Independence, and Professional Judgment Chapter 4 Competence and Continuing Professional Education Chapter 5: Quality Control and Peer Review Chapter 6: Standards for Financial Audits Chapter 7: Standards for Attestation Engagements and Reviews of Financial Statements Chapter 8: Fieldwork Standards for Performance Audits Chapter 9: Reporting Standards for Performance Audits