GAO Requests Questions for Auditor Independence Guidance

NEW YORK -- The GAO has issued new auditor independence standards that could change the mix of services that CPA firms provide their "Yellow Book" clients. The GAO has asked members of the NYSSCPA that are engaged in "Yellow Book" audits, to send them implementation questions, cases, scenarios, and concerns that have arisen because of the new standards. The GAO expects to issue implementation guidance based on the questions it receives as FAQs. The GAO has indicated that they will discuss the implementation issues only after the publication of the FAQ guidance.

The NYSSCPA has committed to prepare a set of questions and comments GAO and to provide them to the GAO as soon as possible. Time is of the essence on this project, and your submissions should be before March 15, 2002 in order to have an impact.

The new GAO standards are downloadable at http://www.gao.gov/govaud/agagas3.pdf.

The AICPA has posted the new standards, a fact sheet and a comparison to AICPA rules at http://www.aicpa.org. While you may wish to refer to the AICPA documents, you should base your questions, cases, scenarios, and concerns on the standards themselves, because the AICPA comparison sheet does not cover all of the standards.

Please send your questions, cases, scenarios, and concerns to rhcolson@nysscpa.org.