In: Accounting
The auditors’ responsibility for reporting violations of laws and regulations under Generally Accepted Government Auditing Standards differs from their responsibility under generally accepted auditing standards. Compare these responsibilities.
Answer:
The generally accepted government audiitng standards somtimes displayed as the acronym GAGAS, provides instructions and gudance for performaing audits based on the ideals of competence, integrity, objectiviy and independence.
If the auditor has identified or suspects noncompliance with laws the adutior should determine whether the auditor has a responsibility to report the identified noncompliance to parties outside the entity. THe auditor should include in the audit documentation a desciption of the identified noncompliance with laws and regulation and the result of discussion with management and when applicable those charged with governance
The auditor of government entity may be required to report on compliance with laws,regulations and provisions of contracts or grant agreements as part of the audit of the governmental entity's financial statements. The auditor may be required to communicate instances of non-compliance to appropirate oversight bodies and funding agencies.