Illustrative Reports From the 2008 AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits

The AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits 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 (Circular A-133). If you perform audits under either the Yellow Book or Circular A-133, this guide is a key resource that should be in your library. 

The Government Auditing Standards and Circular A-133 Audits Guide is updated on an annual basis.  The AICPA last updated the Government Auditing Standards and Circular A-133 Audits Guide for conforming changes as of August 1, 2008. The 2008 edition incorporates audit guidance issued through that date and includes:

·      Guidance on planning and performing audits under the July 2007 revision of Government Auditing Standards

·      Conforming changes for SAS No. 102, Defining Professional Requirements

·      Guidance on the auditor’s responsibilities as found in SAS No. 112, Communicating Internal Control Related Matters Identified in an Audit, and 114, The Auditor’s Communication with Those Charged with Governance, including identifying, evaluating and reporting deficiencies in internal control related to both financial reporting and compliance, and the auditor’s communication with those charged with governance

·      Updated terminology and references to AU sections to be consistent with the AICPA risk assessment standards

·      Enhancements to provide additional clarity on certain problem areas noted in the federal study on single audit quality (the PCIE report) , primarily in Chapters 7 and 9 relating to the Schedule of Expenditures of Federal Awards and internal control over compliance

Appendix D of the Government Auditing Standards and Circular A-133 Audits Guide identifies the changes that were made to the 2008 edition of the Guide to incorporate recent changes in standards, requirements, and other guidance. You can purchase a copy of the Government Auditing Standards and Circular A-133 Audits Guide online or call AICPA Member Services at (888) 777–7077 (product number is 012748).

The Guide also includes examples of the various reports that are issued in a Yellow Book audit and in a single audit. The following report examples (that are excerpts from the 2008 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 in various circumstances.  Note that these reports comply with the requirements of SAS No. 112.  See GAQC Alert #93, for information relating to the impact of the recent issuance of SAS No. 115 (of the same name as SAS No. 112) on Government Auditing Standards.  During 2009, the GAQC team will develop additional Yellow Book report illustrations for auditors that are implementing SAS No. 115 on their Yellow Book audits.  Watch future Center communications for status updates.   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. Note that these reports comply with the requirements of SAS No. 112.  See GAQC Alert #93, for information relating to the impact of the recent issuance of SAS No. 115 on your Circular A-133 reporting.  As noted in GAQC Alert #93, it would not be appropriate for auditors to use definitions for reporting on internal control over compliance that may be consistent with the definitions found in SAS No. 115 until such time as Circular A-133 or other regulations or guides are amended to allow usage of new updated definitions.  Watch future Center communications for status updates. 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) issued updated internal control reporting that reflects the requirements of SAS No. 112 for audits performed under the HUD Guide. Those reports 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. As noted above, it would not be appropriate for auditors to use definitions for reporting on internal control over compliance that may be consistent with the definitions found in SAS No. 115 in their HUD reports until such time as HUD updates its guidance to allow usage of new updated definitions.  The following updated HUD 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])