While much of the focus of the implementation of SAS 134-140 have been on the financial statement report and the Single Audit report, it is important to note that when the AICPA issued updated examples in their A&A guide, it included changes to the Yellow Book report as well. We’ll review some of the biggest changes to make sure these minor edits are included when issuing GAGAS reports.
GAO has issued a technical update to Yellow Book. In a very rare move, GAO has made modifications to a handful of paragraphs in the 2018 Yellow Book. The updates address the concept of equity, SKE for nonaudit services and changes to evaluation of internal controls for performance audits. Updates were effective upon issuance.
GAO has issued an alert addressing COVID and Yellow Book CPE requirements. More rules being relaxed. It does NOT change CPE requirements for any other organizations. The relaxation of CPE is intended to be responsive to the cancellations of many CPE events due to COVID19.