Which of the following is a statement about the relationship between generally accepted government auditing standards (GAGAS)and generally accepted auditing standards (GAAS)?
A) GAGAS and GAAS provide standards for financial audits, attestation engagements, and performance audits.
B) GAGAS encompass GAAS and supplement certain GAAS.
C) Single audits must be performed using GAGAS and GAAS.
D) GAGAS are promulgated by the Government Accountability Office and GAAS are promulgated by the Governmental Accounting Standards Board.

Question

Quizplus · Accepted Answer

GAGAS are a set of standards that encompass GAAS and supplement them with additional requirements for performance audits, attestation engagements, and financial audits of government entities. Therefore, Option B is the correct statement. Option A is incorrect because it is a general statement about both standards but does not address their relationship to each other. Option C is incorrect because single audits are required to be performed in accordance with GAGAS only. Option D is incorrect because GAAS are promulgated by the American Institute of Certified Public Accountants (AICPA), not the Governmental Accounting Standards Board.

Which of the Following Is a Statement About the Relationship