COSO vs. GAGAS

COSO vs. GAGAS: A comparison of the 5 components of the COSO model to “The System of Quality Management” in the 2024 Yellow Book.

In 2018, the GAO asked us to evaluate the auditee against the COSO model of internal controls. Now, in 2024, the GAO asks us to apply COSO concepts to our own audit organization. Karma!

COSO vs. GAGAS

1. Control Environment vs. A leader of the system of quality control will be held accountable

2. Risk Assessment vs. Audit organizations must assess risk against 6 quality objectives

3. Control Activities vs. Respond to significant risks with quality controls, including immediate actions, policies and procedures

4. Information and Communication vs. Information and Communication is a quality objective and requirements to share quality flaws among the audit team abound

5. Monitoring vs. Monitoring is continuous and custom designed to respond to risks

Want to learn more?

Allow me guide you in the right direction in the The 2024 GAO Yellow Book Interpreted self-study course. Plus, it includes a new standards compliance tool helping you stay on track during your audits. I converted the 2024 Government Auditing Standards (also known as GAGAS) into easy-to-understand terms. This course is also included in the Yellow Book Standards for Financial Auditors Bundle and the Yellow Book Standards for Performance Auditors Bundle.

This text covers the latest on quality management, independence, and audit planning for financial, attestation and performance engagements. Whether you are an internal auditor, government monitor or external auditor, the Yellow Book could apply to you.