Government Auditing Standards and Professional Requirements - Yellow Book Series (Course Id 2597)

• Who is this course for?
  This course is designed for auditors—including government auditors, CPA firms, and audit organizations—that must comply with Generally Accepted Government Auditing Standards (GAGAS), particularly those auditing government entities or recipients of government awards.

• What is this course about or what problem does this course solve?
  It teaches the application of the Yellow Book standards, explaining when they apply, the categories of GAGAS requirements, guiding ethical principles, role responsibilities on engagements, and updated areas in the 2024 revision.

• How can the knowledge from this course be used?
  Students can apply it to plan and perform government audits, ensure audit reporting compliance, maintain independence, fulfill continuing competence and CPE obligations, and structure engagement teams effectively.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  CPAs performing or overseeing government audits need Yellow Book knowledge for integrity, ethics, independence, quality control, and state board and NASBA compliance to maintain licensure and credibility.

• When is this course relevant or timely?
  Released in mid‑2025 and updated to cover the 2024 Yellow Book revisions, it's timely for audits starting before or on the implementation deadlines (December 15, 2025 for financial and performance audits).

• How is a course like this consumed or used?
  Delivered as NASBA‑approved self‑study text (QAS registry), the course is taken independently online, includes a final exam (15 questions, 70% passing score), and must be completed within one year of purchase to earn 3.0 CPE credits.

The Generally Accepted Governmental Auditing Standards, also known as the Yellow Book, provides a comprehensive framework for conducting governmental audits with a focus on high quality, integrity, competence, independence, and objectivity. The Yellow Book is used by auditors of government organizations, entities that receive government awards, and any other audit organization performing Yellow Book audits. The Yellow Book outlines all requirements for governmental audit reports, professional qualifications for auditors, and audit organization quality control.

This course will describe when the Yellow Book standards must be applied. This course will identify the categories of requirements that GAGAS uses to describe the degree of responsibility imposed on auditors and audit organizations. This course will identify the ethical principles that guide the work of auditors who conduct engagements in accordance with GAGAS. Finally, this course will identify the individuals that have a role on an audit engagement.

NASBA QAS - Text - NASBA Registry - 2597

Chapter 1
2018 Yellow book Overview

• Recognize when the Yellow Book standards must be applied.
• Identify the new organization and format of the 2024 Yellow Book.
• Recognize the five areas that changed in the 2024 Yellow Book from the 2018 Yellow Book.

Chapter 2
General Requirements for Complying with Government Auditing Standards

• Identify the categories of requirements that GAGAS uses to describe the degree of responsibility imposed on auditors and audit organization.

Chapter 3
Ethics, Independence, and Professional Judgment

• Identify the ethical principles that guide the work of auditors who conduct engagements in accordance with GAGAS.
• Recognize the purpose of applying the GAGAS Conceptual Framework.
• Recognize that action that must be taken by auditors if they conclude that the independence of the engagement team or the audit organization is impaired.

Chapter 4
Competence and Continuing Professional Education

• Identify the individuals that have a role on an audit engagement.
• Identify the number of CPE hours that must be completed in a 2-year period in order to maintain their professional competence.
• Recognize the requirements related to specialists using during an audit.

Chapter 1 - 2024 Yellow Book Overview

Objectives

2024 Yellow Book Overview Introduction

Yellow Book

Engagement Team Definitions

Auditor:

Engagement team (or audit team):

Specialist:

Yellow Book Publications

Purpose

When and Where to Apply the Yellow Book

Effective Date

Overview of the 2024 Yellow Book Changes

Competence and CPE Requirements

Obtaining the 2024 Yellow Book

Chapter 1 Review Questions

Chapter 2: General Requirements for Complying with Government Auditing Standards

Objectives

Relationship between GAGAS and Other Professional

Standards

Stating Compliance with GAGAS in the Audit Report

Chapter Summary: General Requirements for Complying with Government Auditing Standards

Chapter 2 Review Questions

Chapter 3: Ethics, Independence, and Professional Judgment

Objectives

Ethical Principles

The Public Interest

Integrity

Objectivity

Proper Use of Government Information, Resources, and Positions

Professional Behavior

Independence

GAGAS Conceptual Framework Approach to Independence

Provision of Non-audit Services to Audited Entities

Consideration of Specific Non-audit Services

Documentation

Professional Judgment

Figure 1: Generally Accepted Government Auditing Standards Conceptual Framework for Independence

Figure 2: Independence Considerations for Preparing Accounting Records and Financial Statements

Chapter Summary: Ethics, Independence, and Professional Judgment

Chapter 3 Review Questions

Chapter 4: Competence and Continuing Professional Education

Objectives

Competence

Continuing Professional Education

Chapter Summary: Competence and Continuing Professional Education

Chapter 4 Review Questions

Glossary