MRD 08-PAS-003(R) - Audit Guidance on the July 2007 Revision to the Generally Accepted Government Auditing

DEFENSE CONTRACT AUDIT AGENCY DEPARTMENT OF DEFENSE8725 JOHN J. KINGMAN ROAD, SUITE 2135 FORT BELVOIR, VA 22060-6219 IN REPLY REFER TO PAS 730.3.B.3 February 5, 2008 08-PAS-003(R) MEMORANDUM FOR REGIONAL DIRECTORS, DCAA DIRECTOR, FIELD DETACHMENT, DCAA SUBJECT: Audit Guidance on the July 2007 Revision to the Generally Accepted Government Auditing Standards (Yellow Book) Summary This memorandum summarizes the significant changes to the generally accepted government auditing standards (GAGAS) as a result of the July 2007 revision to the Yellow Book and provides guidance on implementing those changes. In summary: • The results of routine nonaudit services performed by FAOs (e.g., memorandum to requestor) should state that the work performed does not constitute an audit or attestation engagement under GAGAS; • If an impairment to independence is identified after the audit report is issued, the FAO should assess the impact and coordinate with the region on its assessment; • Guidance on documentation related to identifying potential personal independence impairments has been enhanced to include (1) documenting the accomplishment of the mandatory annual independence training and signing of independence statements and (2) where to file auditor independence statements and recusal/disqualification letters; • Auditors should communicate with the appropriate contractor representatives during the audit, hold the annual program plan meeting at ...