Introduction to Government Auditing
Purpose of Government Audits
Government auditing evaluates whether public resources are managed responsibly, financial information is reliable, and organizations comply with laws, regulations, contracts, and grant agreements. In the United States, government audits are commonly performed under Government Auditing Standards (the Yellow Book) issued by the U.S. Government Accountability Office (GAO).
- Promote accountability and transparency.
- Assess compliance with laws and regulations.
- Evaluate stewardship of public funds.
- Support public confidence in government programs.
Note
Government audits often include objectives beyond those of a traditional financial statement audit.
Summary
Government auditing focuses on accountability, compliance, and effective use of public resources.