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Guidelines for carrying out Government Audit issued by the Government Account Office (GAO) were compiled into a complete book known as the “Government Auditing Standards.” It is also widely known as the “Yellow Book”.

Background of the "Yellow Book"

Yellow Book consists of guidelines and rules for auditors and audit organizations, outlining the characteristics of good audit reports, professional qualifications for auditors, and audit quality guidelines. Many federal, state, and local government auditors use these standards, commonly referred to as generally accepted government auditing standards (GAGAS), to produce their reports.

Practical Implications of the “Yellow Book”

The Yellow Book is essential to the government auditors. It includes rules and guidelines that help government auditors hold the organizations accountable. It contains requirements relating to ethics, independence, auditors' professional judgment and competence, quality control, the performance of the audit, and reporting. The standards ensure the information disclosed in an auditor's report has been objectively acquired and evaluated as per the established norms and helpful to its readers who rely on these audits to make critical decisions.

There are basically three types of audits covered under the yellow book:

  • Performance Audit: It is carried out to improve program performance, reduce costs, and help organizations make better decisions.
  • Financial audits: It is carried out to provide an independent evaluation that whether the financial information of a respective organization reports and reflects a fair view as per the recognized criteria.
  • Attestation Engagements: It covers a broad range of financial or nonfinancial objectives. The auditor issues an examination, a review, or an agreed-upon procedures report.


What are the CPA (AICPA) Yellow Book CPE requirements?

Continuing education requirements of the Yellow Book have been drafted by Government Account Office (GAO). As per the CPE requirement, each auditor is performing duty as per GAGAS is required to complete 24hours of CPE related to government audits every two years. Further, auditors engaged in the planning, directing, and reporting of the GAGAS audit must obtain additional 56 hours of CPE annually in addition to 24 hours of Credits mentioned earlier, which means in total 80 CPE* for every 2 years to enhance the auditor's ability to perform the audit. In this case, the auditor must complete 20 hours of CPE in each year of the 2 years period. *same requirement is applicable to auditors who are in charge 20 % or more of their time annually to GAGAS audits.

Best Courses on myCPE that GAGAS Auditors should not miss!

These online CPE courses will introduce and update you with the recent occurrences related to the Yellow Book. If you wish to learn only the fundamentals of the Yellow Book then you should go for Introduction to Government Accounting. To understand the practical application of the yellow book, you can go for “Yellow Book 101: A Practical Approach”. However, to gain more in-depth knowledge on government accounting updates and not-for-profit updates, opt for “Yellow Book Boot Camp Part 1” and "Yellow Book Boot Camp Part 2".

The standalone value of these Yellow Book CPE courses is unique for experienced professionals. These online webinars will strengthen foundational understanding in the domain. The courses on myCPE will cover the basics of Yellow Book along with the nuances of non-profit accounting. They also introduce you to the unique requirements of governmental accounting. Furthermore, these courses are designed to help all those in this domain and who are looking to upgrade themselves with a refresher.

Why myCPE is the first choice of GAGAS Auditors for their continuing education!

Keeping track of CPE is very easy with myCPE. You can monitor all the credit points gained from the courses/ webinars attended. It also helps to plan for future selection of courses to meet your continuing education requirements. my-CPE offers you a wide variety of approved courses to meet Yellow book CPE requirements.

You can opt for a live webinar by leading educators in the field. However, if you wish to go at your own pace, then there are numerous courses in self-study (on-demand) format which you can follow at your own convenience. Furthermore, instead of looking for each course, you can also go for a Yellow Book 24 CPE Package or  Yellow Book 80 CPE Package that will cover all your credit needs in just one go! You will also get an instant certificate at the end.

Blaise Wabo
Blaise Wabo

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