What is the Yellow Book for Audits?

When it comes to auditing in the public sector, the Yellow Book serves as the gold standard. Officially known as the Generally Accepted Government Auditing Standards (GAGAS), the Yellow Book is issued by the U.S. Government Accountability Office (GAO) and sets the benchmark for conducting high-quality audits with objectivity, competence, integrity, and independence.

The Foundation of Public Sector Auditing

The Yellow Book provides a consistent framework for auditors who examine the finances, compliance, and performance of government entities, nonprofits, and organizations receiving public funds. It ensures that audit results are credible, consistent, and useful to oversight bodies, policymakers, and the public.

Whether an audit involves a federal agency, a city government, or a nonprofit managing a federal grant, the Yellow Book ensures that the work is conducted with the highest ethical and professional standards.

Types of Audits Covered

The Yellow Book covers three main types of audit engagements:

• Financial Audits: Assess whether an entity’s financial statements are presented fairly and in accordance with applicable accounting standards.
• Attestation Engagements: Include examinations, reviews, and agreed-upon procedures covering subject matters like internal controls and compliance.
• Performance Audits: Evaluate the efficiency, effectiveness, and economy of government operations and programs—focusing not just on financial data but also on outcomes.

Why It Matters

Government and nonprofit audits are often conducted in complex regulatory environments with heightened public scrutiny. The Yellow Book provides a roadmap to navigate these challenges, helping auditors maintain independence and avoid conflicts of interest while producing work that stands up to review by funding agencies and legislative bodies.

Organizations that follow Yellow Book standards demonstrate a commitment to transparency, accountability, and fiscal stewardship—key values for maintaining public trust.

2024 Yellow Book Update

The latest Yellow Book revision, released in 2024, becomes effective for financial audits and attestation engagements for periods beginning on or after December 15, 2025, and for performance audits beginning on or after the same date. This update emphasizes enhancements in audit documentation, independence safeguards, and quality control procedures. For any professional audit support, Dimov Audit stands ready. Contact us today for full compliance.

‍