Government Auditing Standards: The Conceptual Framework Approach to Independence (Second Edition)
Authored by Perry Henderson, CPA, MPA
About this Course
This course looks at the Yellow Book’s conceptual framework approach to independence, which has moved toward a more principles-based platform, and away from a strictly rule-driven regime, consistent with US GAAP and international auditing standards. The framework balances a set of rules prohibiting certain services and relationships, with a broader framework to assess the effect on independence of performing services or maintaining relationships that are not listed among those that are strictly forbidden. Auditors are required to analyze all circumstances and relationships that may result in threats to independence, and all permitted nonaudit services, using the threats-and-safeguards features of this framework. Upon completion of this course, the reader should be able to: Define the two categories of independence listed in Government Auditing Standards; Explain the application of the conceptual framework approach to independence contained in Government Auditing Standards; List the safeguards contained in the conceptual framework; Explain how to evaluate the effects of nonaudit services on auditor independence; List prohibited nonaudit services.
Basic understanding of existing Government Auditing Standards.