Chapter 16 - Auditing governments and not-for-profit organizations. In this chapter, the learning objectives are: Auditing government & not-for-profit vs. business , types of audits that governments conduct, standards of government audits, role of “yellow-book” in governmental auditing, | Chapter 16 Auditing Governments and Not-For-Profit Organizations © 2016 John Wiley & Sons, Inc. All rights reserved. 1 1 Learning Objectives Auditing Government & Not-for-Profit vs. Business Types of audits that governments conduct Standards of government audits Role of “Yellow-Book” in governmental auditing Single Audit Act (A-133) Auditor reports Characteristics and key elements of performance audits Ethical issues facing governmental and not-for-profit accountants and auditors. © 2016 John Wiley & Sons, Inc. All rights reserved. 2 2 FACT . Government Accountability Office (GAO) Audit of the . Government For the past 17 YEARS, from 1997 to 2014, the GAO has Disclaimed an Opinion on the . Government’s Financial Statements (page 225) © 2016 John Wiley & Sons, Inc. All rights reserved. 3 © 2016 John Wiley & Sons, Inc. All rights . | Chapter 16 Auditing Governments and Not-For-Profit Organizations © 2016 John Wiley & Sons, Inc. All rights reserved. 1 1 Learning Objectives Auditing Government & Not-for-Profit vs. Business Types of audits that governments conduct Standards of government audits Role of “Yellow-Book” in governmental auditing Single Audit Act (A-133) Auditor reports Characteristics and key elements of performance audits Ethical issues facing governmental and not-for-profit accountants and auditors. © 2016 John Wiley & Sons, Inc. All rights reserved. 2 2 FACT . Government Accountability Office (GAO) Audit of the . Government For the past 17 YEARS, from 1997 to 2014, the GAO has Disclaimed an Opinion on the . Government’s Financial Statements (page 225) © 2016 John Wiley & Sons, Inc. All rights reserved. 3 © 2016 John Wiley & Sons, Inc. All rights reserved. 4 “While significant progress has been made in improving federal financial management since the federal government began preparing consolidated financial statements 17 years ago, three major impediments continued to prevent us from rendering an opinion on the federal government's accrual-based consolidated financial statements over this period: (1) serious financial management problems at DOD that have prevented its financial statements from being auditable, (2) the federal government's inability to adequately account for and reconcile intra-governmental activity and balances between federal entities, and (3) the federal government's ineffective process for preparing the consolidated financial statements.” Three major impediments (1) SERIOUS financial management problems at the Department of Defense (2) the federal government's INABILITY to adequately account for and reconcile intra-governmental activity and balances between federal agencies .
