This summer, the U.S. Government Accountability Office (GAO) issued an update to Generally Accepted Government Auditing Standards (GAGAS). GAGAS is commonly referred to as the “Yellow Book” and are designed to provide a framework for high-quality government audits. The standards are applicable to certain governmental entities and other entities receiving federal government awards, such as not-for-profit organizations and institutes of higher education.
This revision supersedes the 2011 revision of the Yellow Book and is effective for financial statements for periods ending on or after June 30, 2020.
Overall, the 2018 update focused primarily on reorganizing the Yellow Book more than substantial changes to the underlying standards. However, key updates to be aware of include:
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