Federal Government Auditing: Laws, Regulations, Standards, Practices, & Sarbanes-Oxley -- Copyright -- Contents -- Preface -- Part I: Background of Federal Auditing -- Chapter 1: Background of Federal Auditing: Evolution, Standard Setters, Responsibilities, Audit Types -- Auditing and Government -- Auditing the Federal Government: Definition and Scope -- Federal Auditing: Who Sets the Standards? -- American Institute of Certified Public Accountants -- U.S. Government Accountability Office -- U.S. Office of Management and Budget -- OMB Circulars and Bulletins -- Offices of Federal Inspectors General -- Types of Governmental Audits -- Financial Audits -- Performance Audits -- Other Attest Engagements -- Organization of the Book -- Part I: Background of Federal Auditing -- Part II: Federal Budgeting, Accounting, and Financial Statements -- Part III: Auditing in the Federal Government -- Part IV: Nature of Selected Federal Audits -- Chapter 2: Federal Audit Criteria: Laws, Regulations, Audit Standards -- The Constitution: ``The Power of the Purse ́́-- Constitutional Financial Authority -- Federal Budget Defined -- Congressional Authorizing Legislation -- Major Budget and Financial Management Laws -- Anti-Deficiency Act: Cannot Spend More than Congress Provides -- The Act's Objective -- Section 3679 Audit Considerations -- Noncompliance Consequences -- Budget and Accounting Act of 1921 -- Audit and Examinations of the Government and Others -- Budget and Accounting Procedures Act of 1950: Strengthened Federal Financial Practices -- Audit Principles and Standards -- Supplemental Appropriations Act of 1951: Define the Legal Form for Federal Obligations -- Impoundment Control Act of 1974: Congressional Budget Office, New Fiscal Year, and More -- Other Provisions: New Budget Process, New Agency, New Fiscal Year -- Inspector General Act of 1978.

Federal Managers ́Financial Integrity Act of 1982 -- Single Audit Act of 1984: One Audit, Once a Year, By One Auditor -- Historical Problems with Audits of Federal Grantees -- Scope of a Single Audit, as Amended -- Working Papers: Access, Retention -- Single Audit Act: Application -- Additional ``Standards ́́for Single Audits -- Federal Credit Reform Act of 1990: Full Cost of Loans and Loan Guarantees Must Be Budgeted -- Chief Financial Officers Act of 1990: Uniform Reporting, Agency CFOs, Annual Financial Statements, Independent Audits -- Concerns of Congress -- Financial Policy and OMB -- Agency CFOs and Deputy CFOs -- CFO Responsibilities -- Federal Financial Statements: Agency and Government-Wide -- Annual Independent Audits -- CFO ``Applicable Accounting Principles ́́-- The CFO Act: Other Changes -- Government Performance and Results Act of 1993, Amended in 2010 -- Need for the Act -- Definitions: For Comparable Communications of Results -- Federal Financial Management Improvement Act of 1996 -- FFMIA: Compliance Must Be Audited and Reported -- Accountability for Tax Dollars Act of 2002 -- Improper Payment Information Act of 2002, Amended in 2010 and 2012 -- Department of Homeland Security Financial Accountability Act of 2004 -- Federal Funding Accountability and Transparency Act of 2006 -- Chapter 3: Selected Issues in Federal Financial and Internal Control Reporting -- Federal Financial Statements -- Federal Financial Reporting and Internal Control Today -- Accelerated Audit and Reporting Schedule -- Assertions Relating to Internal Control over Financial Reporting -- Internal Controls Standards -- An Emphasis on Internal Control Over Financial Reporting -- Internal Controls: Reporting by Federal Agencies -- Assessing Internal Control over Financial Reporting -- OMB internal control Deficiencies.

GAO's Government Auditing Standards: No Audit of Internal Controls over Financial Reporting -- Emerging Issues -- Achieving a Government-Wide Audit Opinion -- Developing Information to Support Decision Making -- Leveraging Technology to Audit More Effectively -- Enhancing Financial Reporting -- Part II: Federal Budgeting, Accounting, and Financial Statements -- Chapter 4: Accounting in the Federal Government: Budgets, Accountable Events, Transactions -- The Federal Budget Process -- Budget, Planning Years -- Budget Cycle -- Phase I: Budget Preparation Phase -- Phase II: Congressional Action Phase -- Phase III: Budget Execution Phase -- PPBS, ZBB, and MBO Budget Concepts -- Planning, Programming, and Budgeting System -- Federal Accounting: Process, Definitions, Transactions, Life Cycle -- Basis for Federal Accounting -- Budgetary Accounting -- Fund Accounting -- Nature of Congressional Authorizations and Appropriations -- Nature of Congressional Allocations -- Nature of an OMB Apportionment -- Nature of Federal Entity Allotments -- Nature of Federal Allowances -- Nature of Federal Obligations -- Legal Form for Federal Obligation -- Other Conditions for Obligations -- Recording Obligations -- Nature of Expenditures -- Proprietary Accounting -- Accrual Accounting -- Accounting for Assets -- Accounting for Liabilities -- Accounting for Revenues or Receipts -- Accounting for Expenses -- Accounting for Costs -- Accounting for Disbursements -- Chapter 5: Federal Financial Statements -- Introduction to Federal Financial Statements -- Historical Emphasis of Federal Financial Reporting -- Hierarchy of Accounting Principles for Federal Entities -- Federal Government's Accounting Hierarchy -- Federal Reporting Entity -- Limitations of Appropriation, Cash Basis Accounting -- Breadth of Federal Entity Accountability.

Reporting by Departments, Agencies, and the Government as a Whole -- Performance and Accountability Reports -- Government Corporations -- Federal Financial Statements -- Balance Sheet (Statement of Financial Position) -- Statement of Net Cost -- Statement of Changes in Net Position -- Statement of Budgetary Resources -- Statement of Custodial Activity -- Statement of Social Insurance and Statement of Changes in Social Insurance Amounts -- Management's Discussion and Analysis -- Required Supplementary Stewardship Information -- Government-wide Financial Statements -- Format of Consolidated U.S. Statements -- Content of Consolidated U.S. Statements -- Basis of Accounting for U.S. Statements -- Financial Reporting Checklist -- Part III: Auditing in the Federal Government -- Chapter 6: Evolving Guidance: Recent Developments in Auditing Standards -- 2006 Standards -- SAS 102: Setting the Stage for the Risk Assessment Standards (SASs 104-111): Thou Shall… -- SAS 103: Setting the Stage for the Risk Assessment Standards (SASs 104-111): Can Anyone Follow What You Are Doing? and It's Not Over Until It's Over -- SAS 104 through SAS 111: The Risk Assessment Standards: Shouldn't We Have Been Doing This All Along? -- Recent Developments in Federal Guidance -- GAO's Yellow Book Standards -- GAO's Financial Audit Manual -- OMB's Audit Requirements for Federal Financial Statements (Bulletins 06-03 and 07-04) -- Chapter 7: The Federal Audit Model -- Audit Checklists and Models -- Federal Audit Model -- Phases of Federal Audits -- Phase I: Planning the Audit -- Phase II: Understand and Evaluate Internal Controls -- Phase III: Test Controls, Transactions, Account, and Account Groups -- Phase IV: Reporting Audit Conclusions, Audit Results, and the Auditor's Opinion -- Government Auditing Standards: Not Stand-Alone Standards -- Management's Assertions.

Audit Tests, Procedures, and Activities -- Audit Evidence -- Sampling -- Materiality -- Accounting Materiality Defined -- Pervasiveness of Materiality -- Qualitative Materiality -- Discreditable Acts -- Chapter 8: Planning the Audit: Well Done Is Half Done -- Planning to Fill the Knowledge Gaps -- Independent Accounting Firms Must Plan Even Faster -- Planning Phase: Do It Early, Do It Continuously -- Audit Models, Audit Checklists: No Substitutes for Judgment -- Understand the Federal Auditee: Each Is Unique -- Understand the Agency-Learn Its Business -- Assess the Agency's Control Environment: Initiate Risk Analysis and Document an Audit Strategy -- Audit Techniques and Sources of Information: How to Achieve an Understanding of the Agency -- External Guidance: By Regulators and Standard Setters -- Internal Guidance: By Agency, Cabinet, and Subcomponents -- Audit and Consulting Reports and Working Papers -- Internally Developed Documentation -- Historical and Interim Accounting Information -- Management and Operating Personnel -- Circular A-123 Documentation -- Audit Techniques: Documenting the Understanding -- Put the Understanding to Use: Develop the Initial Audit Approach -- Establishing Materiality: A Key Determination Requiring Audit Judgment -- Identifying Significant Accounts: Areas of Audit Significance and Potential Audit Issues -- Establishing Rules of Engagement: Administering and Managing the Audit -- Audit Team Meetings: What Do We Think? -- Documenting the Planning Phase: Developing the Account Risk Analysis and the Audit Strategy/Audit Plan -- Account Risk Analysis: How Are Things in the Back Office? -- Audit Strategy/Audit Plan: What's Next and Why? -- Document the Planning Phase: Gantt Chart the Audit Approach -- Chapter 9: Documenting Internal Controls: What, Who, Where, and Why? -- Internal Controls, Definitions, and Requirements.

Internal Controls, a Historical Perspective.