Certified Research Administrator Practice Exam

What are generally accepted government auditing standards known as?

1. Audit Report

2. Yellow Book

3. GAAP

4. No other name

The correct answer is: Yellow Book

Generally accepted government auditing standards are known as the "Yellow Book." This term originates from the cover of the Government Accountability Office's official publication that outlines these standards, formally named "Government Auditing Standards." The Yellow Book provides a framework for conducting audits of government organizations, programs, activities, and functions, ensuring accountability and transparency in financial reporting. The standards defined in the Yellow Book not only guide auditors on the technical aspects of the audit process but also emphasize ethical principles, independence, and the importance of proper documentation and reporting. This is crucial for public trust and the effective use of taxpayer funds. The other choices refer to different concepts: an Audit Report is the document that presents the findings of an audit, GAAP stands for Generally Accepted Accounting Principles, which are guidelines for financial accounting and reporting, and "No other name" implies that there are no alternative designations for these standards, which is not applicable in this context.