Illustrative Reports From the 2007 AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits

The AICPA last updated the Audit Guide, Government Auditing Standards and Circular A-133 Audits  (GAS/A133 Guide) for conforming changes as of May 1, 2007. Among other things, the 2007 update to the GAS/A133 Guide includes important revisions to incorporate the provisions of SAS No. 112, Communicating Internal Control Related Matters Identified in an Audit and related AICPA Auditing Interpretation No. 1, “Communicating Deficiencies in Internal Control Over Compliance in and Office of Management and Budget Circular A-133 Audit”.  The GAS/A133 Guide presents guidance on the audits of financial statements conducted in accordance with Government Auditing Standards (also referred to as the Yellow Book). It also includes recommendations for the conduct of audits performed in accordance with the Single Audit Act Amendments of 1996 (the Single Audit Act) and Office of Management and Budget Circular A–133, Audits of States, Local Governments, and Non-Profit Organizations. Appendix C of the GAS/A133 Guide identifies the changes that were made to the 2007 edition of the Guide to incorporate recent changes in standards, requirements, and other guidance. You can purchase a copy of the GAS/A133 Guide online or call AICPA Member Services at (888) 777–7077 (product number is 012747).

The Guide also includes examples of the various reports that are issued in a Yellow Book audit and in a single audit. These illustrative report examples have also been updated with the provisions of SAS No. 112 and the related interpretation referred to above (SAS No. 112 was effective for audits of financial statements for periods ending on or after December 15, 2006).  The following report examples (that are excerpts from the 2007 Guide) are included on this Web site for your convenience as follows:

Illustrative Auditor's Reports Under Government Auditing Standards – This link contains examples of the reports issued under generally accepted auditing standards (GAAS) and Government Auditing Standards (Yellow Book) in various circumstances. Learn More>>

Illustrative Auditor's Reports Under Circular A-133 – This link contains examples of the report on compliance with requirements applicable to each major program and on internal control over compliance issued under OMB Circular A–133 in various circumstances. Learn More>>

HUD Issued Internal Control Illustrative Auditor's Reports with Updated SAS No. 112 Terminology

The U.S. Department of Housing and Urban Development (HUD) Consolidated Audit Guide (the HUD Guide) also requires the auditor to report on internal control over compliance. That reporting is also affected by SAS No. 112.  GAQC staff worked with a task force and the HUD Office of Inspector General (OIG) to develop updated internal control reporting that reflects the requirements of SAS No. 112 for audits performed under the HUD Guide. Those were approved by HUD and have been posted to the portion of the HUD Office of Inspector General Web site that includes the HUD Guide. Click here to access the HUD transmittal relating to the issuance of the illustrations. That transmittal states that the change is effective and can be used upon issuance.  It also goes on to state that the new examples shall apply to audits of profit-motivated sponsors/entities with fiscal years ending on or after March 31, 2007. The following updated report illustrations are available:

Example B: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs—Significant Deficiencies Were Noted [No Material Weaknesses])

Example B-1: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs—No Material Weaknesses [No Significant Deficiencies Identified])