[Federal Register Volume 63, Number 153 (Monday, August 10, 1998)]
[Notices]
[Page 42636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21359]
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GENERAL ACCOUNTING OFFICE
[GAO/GAGAS-ED-2]
Government Auditing Standards: Auditor Communication
AGENCY: General Accounting Office.
ACTION: Notice of availability of documents.
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SUMMARY: The U.S. General Accounting Office (GAO), on the
recommendation of the Advisory Council on Government Auditing
Standards, has issued an exposure draft of a proposed revision to
Government Auditing Standards (GAGAS) titled Government Auditing
Standards: Auditor Communication, (GAO/GAGAS-ED-2) and is seeking
public comment. The proposed revision would (1) add a new field work
standard for financial statement audits on auditor communication and,
(2) revise the reporting standard for reporting on compliance with laws
and regulations and on internal control over financial reporting. The
revision will be effective for financial audits of periods ending on or
after September 15, 1999.
DATES: Comments are accepted through September 30, 1998.
ADDRESSES: A copy of the exposure draft can be obtained on the Internet
on GAO's Home Page (www.gao.gov) in the Special Publications section.
Additional copies of these proposed standards can be obtained from the
U.S. General Accounting Office, Room 1100, 700 4th Street, NW.,
Washington, DC 20548, by calling 202-512-6000, or via FAX 202-512-6061.
Comments should be both in writing and on diskette (in ASCII format),
addressed to Robert W. Gramling, Director, Corporate Audits and
Standards, Accounting and Information Management Division, U.S. General
Accounting Office, 441 G Street NW., Room 5089, Washington, DC 20548.
FOR FURTHER INFORMATION CONTACT: Robert W. Gramling, 202-512-9406.
SUPPLEMENTARY INFORMATION: In February 1997, the Advisory Council on
Government Auditing Standards endorsed a revised approach of issuing
individual standards issue-by-issue as the Council reaches consensus on
a particular issue, with periodic codification of the standards. This
revised approach was adopted to provide more timely revision of the
standards for emerging audit issues. However, the practice of seeking
public comments on all draft revisions will continue under the new
approach.
The American Institute of Certified Public Accountants (AICPA), in
issuing Statements on Auditing Standards (SAS) No. 61, Communication
With Audit Committees, and SAS No. 83, Establishing an Understanding
With the Client, set requirements for auditors to establish an
understanding with the client regarding the services to be performed
and to determine that certain matters related to the conduct of an
audit under generally accepted auditing standards are communicated to
those who are responsible for overseeing the financial reporting
process. This exposure draft requires specific communication with the
auditee, including the audit committee if applicable or other
equivalent group, regarding the scope of compliance and internal
control work to be performed under government auditing standards. The
exposure draft also proposes strengthening the linkage of the auditor's
report on the financial statements with the auditor's reports on
compliance with laws and regulations and internal control over
financial reporting when these reports are issued separately. This
exposure draft should reduce the risk that either the auditor or
auditee may misinterpret the needs or expectations of the other party
and should improve the usefulness of the auditor's reports required
under government auditing standards. In addition, this exposure draft
moves a reporting standard on auditor communication, with some
modification, to a field work standard, as communication on the scope
of work to be performed on an audit is viewed more appropriately as a
field work standard. This exposure draft also amends the reporting
standard on reporting on compliance with laws and regulations and
internal control over financial reporting, as well as presents
conforming changes to GAGAS field work standards for financial
statement audits to recognize the effect of SAS No. 78 on GAGAS for
internal control, the effect of SAS No. 82 on GAGAS for consideration
of fraud, and the effect of OMB Circular A-133 on GAGAS for audits of
state and local governments and nonprofit organizations.
The Council will consider the comments in making recommendations to
the Comptroller General of the United States in finalizing revisions to
the standards. Publication of the final standard will be announced in
the Federal Register.
Jeffrey C. Steinhoff,
Director of Planning and Reporting, Accounting and Information
Management Division.
[FR Doc. 98-21359 Filed 8-7-98; 8:45 am]
BILLING CODE 1610-02-P
