When independent CPAs in public practice take engagements to audit governmental units or entities that receive financial assistance from governmental units, they must follow ________.

Question

Quizplus · Accepted Answer

When auditing governmental units or entities that receive financial assistance from governmental units, independent CPAs in public practice must follow both GAAS and the Governmental Auditing Standards (also known as the Yellow Book or GAGAS). This is because GAAS only applies to audits of private entities, while governmental audits also have specific standards and requirements established by the federal government.

When Independent CPAs in Public Practice Take Engagements to Audit