Course Information

Across the globe, government entities are facing increasing demands and heightened expectations from public officials, legislators, and citizens. They demand to know whether government funds are handled properly and whether government programs and services are achieving the purposes for which they were authorized and funded. Governmental audits provide means of access to the performance of those entrusted with public resources. It reinforces the expectation that government entities and officials will carry out their functions effectively, efficiently, ethically and in accordance with the applicable laws and regulations.

Independent assessment of government accountability, risk management, and internal control is increasingly reliant on well-mandated and structured audit activities comprising competent auditors. Generally accepted government auditing standards (GAGAS) establish a framework for performing high-quality audit work with integrity, objectivity and independence. These standards provide the foundation for auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process.

This course focuses on auditing practices in a government environment. It begins with an overview of government structure since the effectiveness of audit function is affected by unique public sector characteristics (e.g. operations, stakeholders, accounting principles). It describes the features of governmental audits and explains why governmental auditing is critical and how it strengthens governance. This course also addresses the application of GAGAS and the standards that establish a foundation for the credibility of auditors’ work. It is designed to help you navigate the complexities of the standards and prepare you to excel in implementing the 2024 Yellow Book with many examples to illustrate the application.

Upon completion of this course, you will have a good understanding of the audit function in government. For example, you will be able to apply ethical principles, independence standards, and quality management requirements to all GAGAS engagements. You will enhance your capability and skill level by incorporating your AICPA knowledge for financial audits, attestation engagements, and reviews of financial statements with the additional GAGAS requirements. Finally, you will be able to carry out performance audits, and prepare a report that improves the programs and activities of the audited entity by providing relevant recommendations.

Part I: Why Audit Function is Critical in Government

• Identify the distinguishing characteristics of the government structure
• Recognize the values of government audits
• Identify the elements of an effective audit activity
• Recognize the applicability of GAGAS
• Identify the level of assurance provided by different types of engagements

Part II: How to Serve the Public Interest

• Identify auditors’ ethical responsibilities
• Recognize ways to evaluate threats to independence
• Identify safeguards that eliminate threats to independence or reduce them to an acceptable level
• Recognize nonaudit services that impair independence

Part III: How to Maintain High-Quality Work

• Identify competence and quality management requirements for a GAGAS engagement

Part IV: What are Financial Audit Requirements

• Recognize the additional GAGAS requirements for performing financial audits
• Recognize auditors’ responsibilities for abuse and waste
• Identify elements of a finding

Part V: How to Perform Attestation Engagements and Reviews of Financial Statements

• Recognize the additional GAGAS requirements for attestation engagements
• Distinguish among the three types of attestation engagements

Part VI: What are Performance Audit Procedures

• Identify the steps of planning and conducting a performance audit
• Identify key strategies to mitigate audit risk effectively
• Recognize performance audit reporting standards