Accounting for Governmental and Nonprofit Entities 15th Edition by Earl Wilson,Jacqueline Reck,Susan Kattelus

Exercise 6

The director of a not-for-profit organization was overheard saying that government auditing standards (GAGAS) were developed by the federal government to ensure that local governments were spending federal funds appropriately.Therefore, her organization was not concerned with government auditing standards since the organization was only subject to a "normal" (GAAS) audit.Explain why you agree or disagree with the director.