Other Compliance Audit Information Relating to For-Profits

The Governmental Audit Quality Center (GAQC) focuses on all audits and attestation engagements performed under Government Auditing Standards (referred to as the Yellow Book).  Many federal agencies require audits of for-profit entities that participate in federal programs.  These audits are generally required to be performed underGovernment Auditing Standards.  The additional requirements for the audits vary.  Some require a Yellow Book financial statement audit, along with a compliance audit that is performed using requirements defined in a federal audit guide. Some require only a compliance audit or program-specific audit. The key for auditors and auditees is to ensure that an appropriate understanding of the applicable audit requirements is obtained and that there is an awareness of where to find related guidance. 

This section of the GAQC Web site includes a summary of the various federal audit and attestation guides applicable to for-profit entities that the GAQC is aware of, as well as links to where auditees and auditors can find them. The “GAQC Notes” column includes other information that the GAQC is aware of relating to each federal guide or pertinent information that the GAQC believes may be useful.   

CAUTION:  Auditors are cautioned that much of the federal agency guidance cited below has not been updated for many years.  Therefore, many have not been updated for current professional standards. The GAQC will continue to work with the federal agencies listed below, encouraging them to update and maintain audit guidance on a timely basis.  However, keep in mind that paragraph 22 of  AU-C section 935, Compliance Audits, states that “In instances where audit guidance provided by a governmental agency for the performance of compliance audits has not been updated for, or otherwise conflicts with, current GAAS or Government Auditing Standards, the auditor should comply with the most current applicable GAAS and Government Auditing Standards instead of the outdated or conflicting guidance.” Paragraph A.27 of AU-C section 935 goes on to state that “When there is conflicting guidance, the auditor may decide to consult with the government agency responsible for establishing audit guidance or that provides the funding.”