An independent CPA is engaged to audit the financial statements of Holland City . The city has a variety of revenue sources including a $350,000 grant from the U.S. Department of Housing and Urban Development. Which of the following audit standards must the CPA use when conducting the audit?

Question

Quizplus · Accepted Answer

The CPA must use all of the mentioned audit standards: AICPA audit standards for general auditing guidance, GAO audit standards (also known as the Yellow Book) for government audits, and OMB audit standards for federal grants and funding, which would include the HUD grant.

An Independent CPA Is Engaged to Audit the Financial Statements