RICHARD A. CHICHAKLI      

Government Audit

Government audits, although similar in concept and objective to the non-governmental financial audit, it is different because of the applicable accounting standards. In comparison to the AICPA’s “GAAP and GAAS” and which apply to non-government entities, Government accounting and auditing standards in the United States are sourced to the following accounting and reporting standards:

1. Federal Accounting Standards Advisory Board (FASAB) Statements of Federal Financial Accounting Concepts (SFFAC),

2. FASAB Statements of Federal Financial Accounting Standards (SFFAS), and

3. OMB Circular No. A-136, Financial Reporting Requirements

The financial audit of government entities is conducted in accordance with “Generally Accepted Government Auditing Standards (GAGAS) or what is known as the “Yellow Book” and with the use of “Government Financial Audit Manual.”  The manual is a checklist of federal accounting in questionnaire format divided into 10 sections of relevant accounting requirements, the preparer uses the index to determine those areas that apply to the entity under audit. These sections are: