Chapter 6: Standards for Financial Audits


This chapter contains requirements and guidance for conducting and reporting on financial audits conducted in accordance with generally accepted government auditing standards (GAGAS). GAGAS incorporates by reference the American Institute of Certified Public Accountants’ (AICPA) Statements on Auditing Standards (SAS).42 All sections of the SAS are incorporated, including the introduction, objectives, definitions, requirements, and application material. GAGAS does not incorporate the AICPA Code of Professional Conduct by reference but recognizes that certain certified public accountants (CPA) may use or may be required to use the code in conjunction with GAGAS.43 For financial audits conducted in accordance with GAGAS, the requirements and guidance in the incorporated SAS and this chapter apply. The requirements and guidance contained in chapters 1 through 5 also apply.

  1. See para. 2.13 and the AICPA Codification of Statements on Auditing Standards (AU-C) for additional discussion of the relationship between GAGAS and other professional standards.↩︎

  2. See para. 2.14 for a discussion of the AICPA Code of Professional Conduct.↩︎