Reporting Auditors’ Compliance with GAGAS

GAO-03-673G Government Auditing Standards > Chapter 6 General, Field Work, and Reporting Standards for Attestation Engagements > Reporting Auditors’ Compliance with GAGAS

6.29 The standard related to reporting auditors’ compliance with GAGAS for attestation engagements performed in accordance with GAGAS is:

Reports on attestation engagements should state that the engagement was made in accordance with GAGAS.

6.30 When the report on the attestation engagement is submitted to comply with a legal, regulatory, or contractual requirement, or when GAGAS are voluntarily used, the report should specifically cite GAGAS and may cite AICPA standards as well. The statement referencing compliance with GAGAS refers to all the applicable standards that the auditors should have followed during the attestation engagement, and the statement of compliance should be qualified in situations in which the auditors did not follow an applicable standard. In these situations, the auditors should disclose in the scope section of the report the applicable standard that was not followed, the reasons therefor, and how not following the standard affected, or could have affected, the results of the attestation engagement. In assessing the impact of not following an applicable standard on the results of the attestation engagement, auditors may need to qualify the assurances provided, disclaim from providing any assurances, or withdraw from the engagement.

6.31 An audited entity receiving a GAGAS report on an attestation engagement may also need a report on the attestation engagement for purposes other than complying with requirements calling for a GAGAS attestation engagement. GAGAS do not prohibit auditors from issuing a separate report conforming only to the requirements of AICPA standards. When a GAGAS attestation engagement is the basis for an auditors’ subsequent report under the AICPA standards, it would be advantageous to users of the subsequent report for the auditors’ report to include the information on internal control and fraud, illegal acts, violations of provisions of contracts and grant agreements, and abuse that are required by GAGAS but not required by AICPA standards.