2024 Yellow Book revisions
Attention auditors! The GAO issued a new revision of the Generally Accepted Government Auditing Standards. Also known as the “Yellow Book,” the 2024 revision supersedes the 2018 revision of the standards. The Yellow Book is the book of standards and guidance for government auditing. It outlines the requirements for effective, quality audits when reviewing government programs and spending.
From the GAO’s website:
The GAO has updated Government Auditing Standards (commonly known as the Yellow Book) to reflect new developments related to audit organizations’ systems of quality management. These standards intend to help ensure an audit organization produces reliable, objective and high-quality engagements in order to hold management and officials entrusted with public resources accountable for carrying out their duties.
The 2024 revision of Government Auditing Standards contains major changes from, and supersedes, Government Auditing Standards 2018 Revision Technical Update April 2021. Specifically, chapter 5, “Quality Management, Engagement Quality Reviews, and Peer Review” in the 2024 revision replaces chapter 5, “Quality Control and Peer Review,” in the 2018 Revision. In addition, application guidance is added to chapter 6, “Standards for Financial Audits,” in this 2024 revision.
Some of the changes in the 2024 revision of Government Auditing Standards reflect:
- An emphasis on the responsibility of an audit organization’s leadership for proactively managing quality on its engagements
- An approach that promotes scalability of the system of quality management for use by audit organizations differing in size and complexity
- A risk-based process for achieving the objectives of quality management
- A change in approach from quality control to quality management
- Flexibility for audit organizations subject to other quality management standards to avoid the burden of designing, implementing, and operating separate systems of quality management
- Promotion of proactive and effective monitoring activities and increased emphasis on tailoring monitoring activities
- Provisions for optional engagement quality reviews of GAGAS engagements
- Application guidance on key audit matters for when they may apply to financial audits of government entities and entities that receive government financial assistance
Effective date
Government Auditing Standards 2024 Revision is effective for financial audits, attestation engagements, and reviews of financial statements for periods beginning on or after December 15, 2025. For performance audits, the revision is effective beginning on or after December 15, 2025. Consequently, a system of quality management that complies with Government Auditing Standards is required to be designed and implemented by December 15, 2025. An audit organization should complete its evaluation of the system of quality management by December 15, 2026. The 2018 Yellow Book is effective until implementation of the 2024 Yellow Book, but early implementation is permitted.
Want to learn more?
I’ll share more info on these changes soon. If you need to brush up on performance auditing standards in the Yellow Book and learn more about these changes, look no further! I suggest this upcoming webinar Yellow Book Standards for Performance Auditors – March 2024.
Audit on!
— Leita
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