What is the "Yellow Book" commonly referred to in Federal Audit Standards?

The "Yellow Book" is a title commonly associated with the Generally Accepted Government Auditing Standards (GAGAS). These standards are produced by the U.S. Government Accountability Office (GAO) and serve as a framework for conducting audits of government organizations, programs, activities, and functions. GAGAS outlines the ethics, standards of audit performance, and the requirements for reports, ensuring accountability and transparency in federal financial management.

GAGAS is vital for auditors as it provides essential guidance on the ethical responsibilities and methodological approach required in governmental auditing, fostering trust and integrity in public sector financial reporting. This aligns with the purpose of these standards to improve the quality and reliability of government audits, ultimately benefiting the public’s interest.

Other options, while related to government operations and financial management, do not pertain to the auditing standards referred to as the "Yellow Book." GAAP focuses on general accounting principles applicable to both governmental and non-governmental entities, GPRA pertains to performance measurement and accountability in government, and FFMA addresses broader financial management practices within federal agencies.