General Standards

Government Auditing Standards includes general standards, as well as fieldwork and reporting standards that are in addition to those required by generally accepted auditing standards (GAAS). The Government Auditing Standards general standards are in the following areas: independence, professional judgment, competence, quality control, and assurance. You should refer to the 2003 Government Auditing Standards for a full description and understanding of its general standards; however, each is summarized in the table below.  If you are performing your audit using the 2007 revisin of Government Auditing Standards you should click here to access the 2007 revision and its General Standards.

Topic Area	The Government Auditing Standards General Standard Related to This Topic is:	Additional Commentary
Independence	In all matters relating to the audit work, the audit organization and the individual auditor, whether government or public, should be free both in fact and appearance from personal, external, and organizational impairments to independence.	The detailed requirements underlying this standard are in some cases very similar to the AICPA independence rules and in other cases more restrictive, particularly the provisions governing nonaudit services. The Government Accountability Office (GAO) has issued a question and answer document titled Answers to Independence Standard Questions, which responds to questions related to its independence standard. The AICPA has also prepared a summary of the differences between the GAO and AICPA independence rules relating to nonaudit services.
Professional Judgment	Professional judgment should be used in planning and performing audits and attestation engagements and in reporting the results.	This standard is similar to the AICPA's general standard on due professional care in Statement on Auditing Standard (SAS) No. 1, Codification of Auditing Standards and Procedures, section 230 (AICPA, Professional Standards, vol. 1, AU sec. 230, "Due Professional Care in the Performance of Work"), as amended.
Competence	The staff assigned to perform the audit or attestation engagement should collectively possess adequate professional competence for the tasks required.1	Government Auditing Standards build upon the AICPA's general standard on auditor qualification in SAS No. 1, Codification of Auditing Standards and Procedures, section 210 (AICPA, Professional Standards, vol. 1, AU sec. 210, "Training and Proficiency of the Independent Auditor"), as amended, by requiring that an audit organization have a process for maintaining a competent workforce. One of the areas that process should address is continuing professional education (CPE). Every two years, each auditor (whether certified or not) performing audits in accordance with Government Auditing Standards who (a) is involved in planning, directing, or reporting on the audit or attestation engagement or (b) charges at least 20 percent annually of his or her time to audits and attestation engagements following Government Auditing Standards should complete at least 80 credit hours of training that directly enhances the person's professional proficiency to perform audits or attestation engagements. At least 20 of those hours should be completed in any one year of the two-year period. In addition, at least 24 of the 80 hours of CPE should be in subjects directly related to government auditing, the government environment, or the specific or unique environment in which the audited entity operates.  There is an exception to the rules above for those auditors who (a) only perform field work but do not plan, direct, or report on the audit or attestation engagement and (b) charge less than 20 percent annually of their time to audits and attestation engagements following Government Auditing Standards. Those auditors who meet the above criteria are required to take 24 hours of training in each 2-year period in subjects and toipcs directly related to government auditing, the government environment, or the specific or unique environment in which the audited entity operates; they are not also required to comply with the 80-hour CPE requirement.  Government Auditing Standards also states that the audit organization is responsible for ensuring that auditors meet the CPE requirements and should maintain docuemtnation of the CPE completed. The GAO has issued Guidance on GAGAS REquirements for Continuing Professional Education which provides additioanl guidance to auditors and audit organizationsin implementing the CPE requirements prescribed by Government Auditing Standards.2
Quality Control and Assurance	Each audit organization performing audits and/or attestation engagements in accordance with generally accepted government auditing standards should have in place and monitor an appropriate internal quality control system in place and should undergo an external peer review at least once every three years.3	Government Auditing Standards contains requirements for the conduct of the peer review, which should determine whether the internal quality control system was adequate and whetehr the audit organization complied with its quality control policies and procedures.  Further, the audit organization must document its quality control system, retain documentation of compliance for a period of time sufficient to enable monitoring and peer reviews, and to take remedial, corrective actions based on the results of the peer review.