Relationship between GAGAS and Other Professional Standards

Requirement: Relationship between GAGAS and Other Professional Standards

2.11

When auditors cite compliance with both GAGAS and another set of standards, such as those listed in paragraphs 2.13, 2.15, 6.01, and 7.01, auditors should refer to paragraph 2.17 for the requirements for citing compliance with GAGAS. In addition to citing GAGAS, auditors may also cite the use of other standards in their reports when they have also met the requirements for citing compliance with the other standards. Auditors should refer to the other set of standards for the basis for citing compliance with those standards.

Application Guidance: Relationship between GAGAS and Other Professional Standards

2.12

Auditors may use GAGAS in conjunction with professional standards issued by other authoritative bodies.

2.13

The relationship between GAGAS and other professional standards for financial audits, attestation engagements, and reviews of financial statements is as follows:

  1. The American Institute of Certified Public Accountants (AICPA) has established professional standards that apply to financial audits, attestation engagements, and reviews of financial statements for nonissuers (entities other than issuers under the Sarbanes-Oxley Act of 2002,10 such as privately held companies, nonprofit entities, and government entities) conducted by certified public accountants (CPA). For financial audits and attestation engagements, GAGAS incorporates by reference AICPA Statements on Auditing Standards and Statements on Standards for Attestation Engagements.11 For reviews of financial statements, GAGAS incorporates by reference AR-C, section 90, Review of Financial Statements.12

  2. The International Auditing and Assurance Standards Board (IAASB) has established professional standards that apply to financial audits and assurance engagements. Auditors may elect to use the IAASB standards and the related International Standards on Auditing and International Standards on Assurance Engagements in conjunction with GAGAS.

  3. The Public Company Accounting Oversight Board (PCAOB) has established professional standards that apply to financial audits and attestation engagements for issuers. Auditors may elect to use the PCAOB standards in conjunction with GAGAS.

2.14

For financial audits, attestation engagements, and reviews of financial statements, GAGAS does not incorporate the AICPA Code of Professional Conduct by reference, but recognizes that certain CPAs may use or may be required to use the code in conjunction with GAGAS.

2.15

For performance audits, GAGAS does not incorporate other standards by reference, but recognizes that auditors may use or may be required to use other professional standards in conjunction with GAGAS, such as the following:

  1. International Standards for the Professional Practice of Internal Auditing, Institute of Internal Auditors, Inc.;

  2. International Standards of Supreme Audit Institutions, International Organization of Supreme Audit Institutions;

  3. Guiding Principles for Evaluators, American Evaluation Association;

  4. The Program Evaluation Standards, Joint Committee on Standards for Education Evaluation;

  5. Standards for Educational and Psychological Testing, American Psychological Association; and

  6. IT Standards, Guidelines, and Tools and Techniques for Audit and Assurance and Control Professionals, Information Systems Audit and Control Association.

  1. See the Sarbanes-Oxley Act of 2002 (Public Law 107-204) for a discussion of issuers (generally, publicly traded companies with a reporting obligation under the Securities Exchange Act of 1934).↩︎

  2. AICPA, Professional Standards.↩︎

  3. AICPA, Professional Standards.↩︎