The 2007 Yellow Book: What a Beginner Needs to Understand – Member Web Event

The purpose of this archived AICPA Governmental Audit Quality Center (GAQC) Web event is to provide participants with a basic overview of performing audit engagements using Government Auditing Standards (also referred to as the Yellow Book). The event titled, The 2007 Yellow Book: What a Beginner Needs to Understand, was held on February 9, 2011. This archived Web event will be helpful to staff working on for-profit audits and dealing with a Yellow Book audit requirement for the first time. Additionally, you may have other staff working on governmental or not-for-profit organization audits that are new to the Yellow Book or want a refresher listen to this archived event.  

Over the last year, several federal agencies have established audit requirements for for-profit organizations that require a financial statement audit under the Yellow Book, along with a compliance audit of federal funds expended.   For example, the U.S. Department of Housing and Urban Development (HUD) is now requiring supervised mortgagees, including financial institutions, to have their financial statements audited under the Yellow Book and to undergo a compliance audit under the HUD Consolidated Audit Guide.  Another example is the U.S. Department of Energy which has established a Yellow Book and compliance audit requirement for for-profit recipients (e.g., electric utilities, automotive companies, and machinery companies) of certain Energy federal awards.  The auditors of these entities are now pressed to quickly learn about what it means to perform a Yellow Book audit, among other things.  

This archived GAQC Web event is intended to assist these for-profit auditors, as well as other staff new to performing government or not-for-profit audits, in understanding the key requirements of the 2007 revision of Yellow Book and how it differs from the AICPA’s auditing standards.  Participants attending this session will:  

  • Hear a high-level overview of some of the new federal requirements leading to new Yellow Book audits;
  • Get a basic overview of the requirements of the 2007 revision of Government Auditing Standards audit;
  • Learn about some of the key differences between Government Auditing Standards and generally accepted auditing standards including:
    • The Yellow Book Continuing Professional Education (CPE) requirements;
    • Independence rules;
    • Requirements for the reporting on compliance, other matters (including abuse), and internal control over financial reporting;
    • Development of findings;
  • How to access the Yellow Book, related guidance documents, and where you can go to learn more; and
  • Hear about plans for a future revision to Government Auditing Standards later in 2011.  

About the Presenters

Florence Ostrum, CPA, is a National Professional Standards Partner for Grant Thornton LLP and has been with the firm for 18 years.  Flo began her career in the assurance department of the South Florida office of Grant Thornton where her expertise was in serving not-for-profit organizations (NFP) and governmental entities.  Some of Flo’s responsibilities to the NFP practice include developing and delivery of training, being a technical resource for NFP/Government questions, and representing the firm at regulatory roundtables and meetings.  

Brian Schebler, CPA, is the National Director of Public Sector Services for McGladrey & Pullen, LLP.  He primarily is responsible for the Firm’s government, nonprofit, and compliance auditing approaches, as well as for the maintenance of its Government Industry Manual, Nonprofit Organizations Manual, Health Care Manual, and Compliance Audit Manual.  Brian provides technical support to the Firm’s professionals and is involved with the design and presentation of internal and external professional education courses.  He is a Member of the AICPA State and Local Government Expert Panel and a former member of the former member of the AICPA GAQC Executive Committee.  

Mary Foelster, CPA, is a Director at the AICPA where her primary responsibility is to address governmental auditing and accounting matters. She oversees the activities of the GAQC and staffs both the GAQC Executive Committee and the State and Local Government Expert Panel. In addition to managing the activities of the Center and various technical projects, Mary is also responsible for monitoring and analyzing federal regulatory and legislative developments affecting auditing or accounting in governmental environment. Mary is a graduate of the University of Maryland. 

Archived Web Event Listening Instructions

You should print out and have available the The 2007 Yellow Book:  What a Beginner Needs to Understand – Member Web Event Slides (PDF or PowerPoint).   

The presenters addressed many of the questions within the time allotted for the event. We encourage you to visit the forum to post additional follow-up questions at GAQC Member Discussion Forum.

Thank you for your interest in this GAQC Event.

You can download the archived event for playing on your computer while offline or uploading to an MP3 player.  To do so, right click on the following link and select "Save Target As" or "Save Link As."  The download may take a while depending on your connection speed, so please be patient.

Download archived event to your computer or MP3 player