Understanding the AICPA's Yellow Book Independence Practice Aid - Member Web Event

The purpose of this archived web event is to assist participants in understanding a recently issued GAQC practice aid, 2011 Yellow Book Independence—Nonaudit Services Documentation Practice Aid (practice aid). This practice aid is an important tool for auditors that perform nonaudit services and whose audits are performed under the 2011 revision to Government Auditing Standards (the 2011 Yellow Book). See GAQC Alert #188 for more information on the practice aid and how to access a free flat PDF version (for GAQC and AICPA members), as well as a for-sale version that can be used to input information and then saved as audit documentation.

About the Web Event

Participants in this GAQC archived web event will learn about the thought process needed when considering the performance of nonaudit services under the 2011 Yellow Book, as well as how you can prepare documentation to meet the requirements of the new Yellow Book, including assessing and documenting whether management has appropriate skills, knowledge, or experience (SKE) to oversee a nonaudit service.  Case studies and real-life examples will be used to assist you in gaining an understanding of how to assess threats to independence and apply safeguards to address significant threats.  Why is this important before the effective date?  Because even though technically the new Yellow Book is not yet effective,  if you are performing a calendar year-end audit under the 2011 Yellow Book, and also considering performance of nonaudit services, you need to be in compliance with the new independence requirements at the beginning of the audit period—that is, January 1, 2012. Therefore, the new Yellow Book independence requirements could already apply to your practice or they could apply very soon.

Additionally, participants in the Web event will:
  • Gain a more thorough understanding of the independence requirements in the 2011 Yellow Book, including its conceptual framework;
  • Become more comfortable with the practice aid and understand that it highlights the performance of nonaudit services frequently performed for smaller entities (e.g., financial statement preparation);
  • Learn about key information and examples included in the appendixes of the practice aid;
  • Participate in a case study designed to assist in understanding how to complete the practice aid; and
  • Have an opportunity to submit questions about the practice aid and related 2011 Yellow Book requirements.

Participants in this Web event may also wish to listen to a previously archived GAQC Web event titled, The New 2011 Yellow Book: What You Need to Know, to gain a better understanding of the 2011 Yellow Book and the broad changes to its independence requirements.

About the Presenters

Nancy Miller, CPA, is a partner in the Miller Foley Group, a GAQC member firm in Fredericksburg, Virginia. The firm specializes in services to the non-profit and governmental sectors. Nancy chairs the AICPA Technical Standards Subcommittee of the Professional Ethics Executive Committee which has investigated over 400 Yellow Book ethics investigations in the last three years. She also participated in the development of the practice aid. Additionally, Nancy serves on the GAO Advisory Council on Government Auditing Standards and is a peer reviewer.

Brian Schebler, CPA, is the National Director of Public Sector Services with McGladrey & Pullen LLP, a GAQC member firm. He primarily is responsible for the firm's government, nonprofit, and compliance auditing approaches, as well as for the maintenance of its Government Industry Manual, Nonprofit Organizations Manual, Health Care Manual, and Compliance Audit Manual. Brian provides technical support to the firm's professionals and is involved with the design and presentation of internal and external professional education courses. Brian is the current chair of the AICPA GAQC Executive Committee and also serves on the GAO Advisory Council on Government Auditing Standards.


Lisa Snyder, CPA, is the director of the AICPA's Professional Ethics Division and oversees its ethics enforcement and standard-setting. The Division is also responsible for interpreting the Institute's Code of Professional Conduct and provides guidance to membership, state CPA societies, and other interested parties on ethics and independence issues. Lisa was closely involved with the development of the practice aid. She serves as liaison to the Professional Ethics Executive Committee, the Independence Behavioral Standards Subcommittee, and the Technical Standards Subcommittee and is also the technical advisor to the U.S. representative on the IFAC International Ethics Standards Board for Accountants.

Archived Web Event Listening Instructions

You should print out and have available, Understanding the AICPA's Yellow Book Independence Practice Aid for Performing Nonaudit Services – Member Web Event Slides (PDF or PowerPoint).  Additionally, you may also want to download and print the following handouts for the event:

The presenters addressed many of the questions within the time allotted for the event.  We encourage you to visit the forum to post additional follow-up questions at GAQC Member Discussion Forum.

Thank you for your interest in this GAQC Event.

Click here to listen to the archived Web Event.

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