Question

What are the major types of audits and audit engagements described in the Government Accountability Office’s Government Auditing Standards or generally accepted government auditing standards (GAGAS), and how do they differ?

Answer 1

Major types of audits described in GAGAS are Financial Audits, Attestation Engagements, Performance Audits. Besides these, there is Single audit for recipients of federal financial assistance.

1. Financial Audits: These audits incorporate GAAS aand determine whether the financial statements present fairly the financial position,results of operations, and if applicable, cash flows in accordance with GAAP.These engagements can also include audits of financial statements prepared in conformity with a special purpose framework or other comprehensive basis of accounting (OCBOA).

2. Attestation Engagements: Attestaion engagements performed in confirmity with GAGAS incorporate the AICPA's standards for examinations,reviews, and agreed upon procedures by reference and include expanded requirements. Its subjects could include compliance with specified laws & regulations, effectivenss of internal control ,presentation of management's discussion and analysis etc

3. Performance audits: Performance audits provide analysis to assist management in using the information to improve program performance and operations,reduce costs,facilitate decision making or initiate corrective action. Performance audits may include a range of engagements for the following objectives;

- Effectiveness ,economy and efficiency in achievement of goals

- Maintaining sound internal control

- Compliance with laws, regulations

- provide analysis about information that is based on assumptions about events that may occur in the future.