A guide to the GAO Yellow Book

 If you work in auditing or plan to, you’ve likely heard of the GAO Yellow Book as the most important benchmark in government auditing. But understanding the fine print of what it contains, where it came from, and how it governs your responsibilities is a prerequisite for career growth in the field. 

Learn all about the GAO Yellow Book and its importance to your role as an auditor. 

What is the GAO Yellow Book? 

GAO Yellow Book is the common name for the Generally Accepted Government Auditing Standards (GAGAS) set by the Government Accountability Office (GOA). This set of standards that controls government auditing. All professionals who deal with government audits must have deep knowledge of the Yellow Book codes to inform their work and reporting. 

About GAO 

GAO is sometimes called the “congressional watchdog,” as its job is to audit Congress from an independent, non-partisan standpoint to ensure its effectivity and efficiency in completing its constitutional role. ¹

The GAO provides timely and fact-based reporting to Congress, government agencies, and the public to help improve and optimize government spending. The agency works as required by law, if specifically requested by a Congressional committee, or per Congressional protocols; and encompasses these principal functions: 

• Compiles reports and testimonies  
• Informs legal decisions
• Provides audit resources and defines standards
• Reports and prevents fraud 
   

Purpose of the GAO Yellow Book 

Auditors of government entities rely on the GAO Yellow Book to guide their audits, reporting, and even Yellow Book CPE requirements. The Yellow Book guides these professionals to high-quality audit performance, ensuring integrity, objectivity, and independence in the areas of financial audits, attestation engagements, and performance audits.² 

The GAO Yellow Book specifically outlines auditing process by:³ 

• Addressing the auditing requirements unique to government entities
• Establishing general audit standards for governmental and non-governmental audit performance
• Supplementing best practices established by the AICPA and Auditing Standards Board
• Establishing the framework and reporting standards for performance audits 
   

History of the GAO Yellow Book 

The Comptroller General issued the original version of the GAO Yellow Book in 1972, after a large initiative to provide accountability and sustainability to the increase of government programs and spending seen in the mid-1960s. 

Ever since, the GAO has published a series of revisions to the Yellow Book, updating standards according to the evolving needs of the practice. Currently in effect is the 2018 version. However, GAO issued a 2024 update to the GAGAS Yellow Book, which takes effect in 2025 or 2026, depending on the topic (details below).³ 

GAO Yellow Book content 

The most recent GAO Yellow Book spans 9 chapters of comprehensive guidance around auditing: 

• Chapter 1: Foundation and Principles for the Use and Application of Government Auditing Standards
• Chapter 2: General Requirements for Complying with Government Auditing Standards
• Chapter 3: Ethics, Independence, and Professional Judgement
• Chapter 4: Competence and Continuing Professional Education
• Chapter 5: Quality Management, Engagement Quality Reviews, and Peer Review
• Chapter 6: Standards for Financial Audits
• Chapter 7: Standards for Attestation Engagements and Reviews for Financial Statements
• Chapter 8: Fieldwork Standards for Performance Audits
• Chapter 9: Reporting Standards for Performance Audits 
   

2024 updates to the GAO Yellow Book

In 2024, the GAO published a revision to the GAGAS Yellow Book. The changes focus on updating the standards of the auditing systems and management to ensure that firms of all sizes are equipped with the knowledge to guide their quality control processes. 

Updated topics address an auditor’s responsibility to proactively manage engagement quality, recognizing that audit organizations of varying sizes need scalable systems of quality management. 

Additional inclusions encompass: 

• a risk-based process for achieving the objectives of quality management
• provisions for optional engagement quality reviews of generally accepted government auditing standards (GAGAS) engagements
• application guidance on key audit matters for financial audits⁴ 

The 2024 GAO Yellow Book is published and available for review, and organizations can begin implementing immediately. However, auditors are required to follow the 2024 revision by December 15, 2025, as stipulated in these implementation requirements: 

• Updated standards apply to financial audits, attestation engagements, and reviews of financial statements for periods beginning on or after December 15, 2025
• Updated standards apply for performance audits beginning on or after December 15, 2025
• Create a system of quality management compliant with updated standards, designed and implemented by December 15, 2025
• Complete an evaluation of the revised system of quality management by December 15, 2026 
   

Learn more with Becker CPE

If the GAO Yellow Book is on your radar, you may also be required to complete Yellow Book CPE as part of your job responsibilities. Whether this is the case or you just want to learn the ins and outs of government auditing, rely on Becker to provide compliant and relevant learning through our continuing professional education courses. 

Expert instruction and flexible formats combine with updated content and invaluable insights to help you grow your career. Check out these Becker CPE courses (and more!) dedicated to completing Yellow Book CPE requirements: 

• Ethical and Independence Considerations in Yellow Book Engagements
• Yellow Book Update 2025  
• Writing Yellow Book and Single Audit Reports That Comply With Requirements 

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