Public accountants aicpa professional ethics divisions consultation paper. Ethical principles provide the foundation, discipline. Dont allow changes to these standards to result in violations. The professional ethics division enforces the ethical standards set by the aicpa. What you need to know annual conference of federal audit executive council. Ethics training for texas cpas txdp cpa self study. This cpe course provides an excellent baseline of information for accountants to better understand governmental auditing foundations, ethics, general audit standards, financial audit standards, attestation engagement standards, and fieldwork and reporting. Topics discussed foundation and ethical principles of government auditing standards for use and application of generally accepted government auditing standards gagas yellow book general standards standards for financial audits compliance audits under. Find out more about the cpe requirements under generally accepted government auditing standards gagas, also known as yellow book for professionals who perform audits or attestation engagements, including the 802420 continuing education equation. Is it time for you to know the yellow book really know it. In december 2011, the gao released an updated version of the yellow book that is effective.
When a member performs a nonattest service for an attest client, threats to the members compliance with the independence ule 1. The yellow book is used by auditors of government entities, entities that. Checkpoint learning offers integrated curriculum for complete training on yellow book. Aicpas comprehensive course is intended solely for use in continuing professional education and not as a reference. Yellow book tools, practice aids, and other resources for. Do you perform engagements in accordance with generally accepted government auditing standards gagas as presented in the yellow book. The american institute of cpas aicpa is the worlds largest member association. Do you perform engagements in accordance with generally accepted government auditing standards gagas or gas or the yellow book. Government auditing standards become effective prior to these dates. The general requirements for performing nonattest services interpretation of the aicpa code and the general requirements in the yellow book are consistent. Foundation and principles for the use and application of generally accepted government auditing standards gagas general requirements for complying with the yellow book. The aicpa s governmental audit quality center gaqc web site section provide links to practice aids and tools that will assist auditors in understanding the requirements of government auditing standards, issued by the comptroller general of the united states also referred to as the yellow book and gagas. Governmental auditing, these learning resources are designed to help cpas understand the knowledge and skills necessary to perform highquality single audits, yellow book audits, and audits of state and local government financial statements.
Resources include the most uptodate information on the uniform guidance and recent. Identify independence and objectivity issues using the threats and safeguards approach, a conceptual framework. Which of these is not one of the five ethical principles the gaos yellow book stresses. Also, financial audit chapters four and five have been merged into a single chapter. Generally accepted government auditing standards yellow book. Foundation and ethical principles contains concepts and ethical principles that. This guidance is distributed with the understanding that the aicpa is not rendering any legal or ethical advice. Themes of gagas gagas is a very highminded document. David walker, who until recently led the gao, was proud that the yellow book was the toughest set of auditing standards in existence. Nancy chairs the aicpa technical standards subcommittee of the professional ethics executive committee which has investigated over 400 yellow book ethics.
In conclusion, this course will recap the key requirements of the sarbanesoxley act and the aicpa code of professional conduct. Recognize the additional gagas reporting requirements for financial audits. Due to the important role they play in society, cpas have a significant responsibility for the services they provide. This course explains the issues, developments, and problems addressed by recent aicpa and sec ethics pronouncements and updates. The yellow book stresses five ethical principles, including all of the following except. Standards for use and application of gagas chapter 3. Differentiate between rulings and principles of the aicpa code of professional conduct. Allen also covered release of the new aicpa yellow book, which syncs up the aicpa s standards on independence with the gaos.
Auditors may use government resources if the proper requisition forms are completed beforehand. Applicability chapters 1, 2, and 3 apply to all gagas engagements chapter 1. Governmental auditing standards and omb circular a3. Special attention will be given to chapters, focusing on ethics, recent revisions to independence rules, and cpe requirements. The code consists of principles and rules as well as interpretations and other guidance which are discussed in 0.
The aicpa sets ethical standards for the profession and u. Changes to independence standard financial audits since the the 2018 version of the yellow book expands the independence standards by identifying significant threats to independence created during the. Aicpa members represent many areas of practice, including business and industry, public practice, government, education and consulting. These themes, these concepts that crop up frequently in the text of the yellow book, help explain why the gao takes the stands that it does on a variety of controversial topics. Department of labor dol independence rules apply to a. Ethical principles and values while many of the prior ethics courses you may have taken merely.
The impact of the new yellow book independence rules. As a result, all cpas not just members of the aicpa are subject to such ethical requirements. Aicpa yellow book gagas independence rules comparison 2. The aicpa code of professional conduct is a collection of codified statements issued by the american institute of certified public accountants that outline a cpas ethical and professional responsibilities.
Do you perform financial statement audits in accordance with the yellow book. Readers will quickly notice a reorganization of the yellow book. Proper use of government information, resources, and position the first four are fundamental principles of the aicpa code. The aicpa code of professional conduct establishes the fundamental principles of professional ethics. Let leita be your guide as she converts the gao s government auditing standards into plain english and helps you apply its. The code establishes standards for auditor independence, integrity and objectivity, responsibilities to clients and colleagues and acts discreditable to the accounting profession. Yellow book revisions update independence guidance journal of. This course is based on government auditing standards, 2011 revision, which is currently effective and used for audits of.
The proper use of government information, resources, and position. Auditors should not use personal email accounts for governmentrelated communications. One of the gaos ethical principles described in the yellow book stresses that. Both the integrity and objectivity sections of the ethics chapter of the yellow book mention auditor independence and freedom from political or ideological bias. The same ethical principles appear in the 2017 exposure draft. In this section of the auditee resource center, the gaqc is making available to auditees many of the yellow book resources it has provided. Understanding the aicpas yellow book independence practice aid. Yellow book tools, practice aids, and other resources for auditees. It does not represent an official position of the american institute of certified public accountants, and it is distributed with the understanding. In this section of the auditee resource center, the gaqc is making available to auditees many of the yellow book resources it has provided to auditor members. This course is based on the guidance in government auditing standards, 2011 revision, which is currently effective and used for audits of entities with fiscal years ending on or before may 31, 2020. These principles are based on the american institute of certified public accountants aicpa code of professional conduct, which is the standard for all cpas.
Audit services provided to sponsors of employee benefit. The principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage preface to aicpa code of conduct, 51. Identify the six principles and list the eleven rules of the aicpa code of professional conduct. The gao has a few things to say about a government auditors ethical responsibilities and, thus, added a large section on ethics to the 2007 revision of the yellow book. Government auditing standards yellow book practice aids. The course includes a brief look at the principles and concepts which form the foundation of ethical behavior. Which of the following best describes a significant. One of the gaos ethical principles described in the yellow book stresses that 35. A norisk moneyback guarantee you have nothing to lose.
Government auditing standards yellow book practice aids and tools. Governmental auditing standards and omb circular a3 update governmental auditing standards update sas no. Aicpa yellow book gagas independence rules comparison this document highlights provisions in the yellow book s independence standards and compares them to the relevant independence provisions of the aicpa code of. The american institute of cpas aicpa is the worlds largest member association representing the cpa profession, with more than 418,000 members in 143 countries, and a. The generally accepted government auditing standards, also known as the yellow book, provides a framework for conducting highquality audits with competence, integrity, objectivity, and independence. Ethical principles, formerly in chapter two, have now been incorporated into chapter one on the foundational concepts of gagas. Government accountability office the yellow book addresses five ethical principles. Government auditing standards, 2011 revision logo aicpa. Following are sections of the code and the common violations that relate to them. Chapter two now emphasizes the application of gagas. Ray noted that the same standard is in the aicpa code of professional conduct. Ethical principles, now covered in chapter three of the current version, was previously covered in chapter one of the 2011 version.
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