AICPA Significantly Revises Two Governmental Auditing Guides

The American Institute of CPAs (AICPA) has revised two key publications that are relied upon by auditors of governmental and not-for-profit entities that expend federal awards and those who audit state and local government financial statements. The guides are a facet of the AICPA’s Enhancing Audit Quality initiative.

The 2015 edition of the AICPA Audit Guide, Government Auditing Standards and Single Audits, is used by auditors performing single audits of federal expenditures, as well as audits performed in accordance with Government Auditing Standards (the Yellow Book).

“In particular, this year’s guide provides critical information for auditors to manage the transition from performing single audits under OMB Circular A-133 to the new OMB Uniform Guidance regulation for single audits,” said Mary Foelster, AICPA director of governmental auditing and accounting. Foelster oversees the Institute’s Governmental Audit Quality Center.

The audit requirements contained in the new Uniform Guidance for single audits generally become effective for December 31, 2015, year-end single audits and later. Audits performed prior to that time will be under OMB Circular A-133, but there are still Uniform Guidance implications for expenditure testing in those audits.

The 2015 edition of the AICPA Audit and Accounting Guide, State and Local Governments, provides the latest authoritative guidance and critical “how-to” advice for audits of state and local governments.

A critical addition to this year’s guide, updated as of March, 1, 2015, is a comprehensive new chapter that addresses the accounting and financial reporting requirements under GASB’s new pension standards, as well as related auditing considerations for both audits of governmental pension plans and the employers that participate in those plans.