Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.

FISCAM presents a methodology for performing info. system (IS) control audits of governmental entities in accordance with professional standards. FISCAM is designed to be used on financial and performance audits and attestation engagements. The methodology in the FISCAM incorp. the following: (1) A top-down, risk-based approach that considers materiality and significance in determining audit procedures; (2) Evaluation of entitywide controls and their effect on audit risk; (3) Evaluation of general controls and their pervasive impact on bus. process controls; (4) Evaluation of security mgmt. at all levels; (5) Control hierarchy to evaluate IS control weaknesses; (6) Groupings of control categories consistent with the nature of the risk. Illus.

Local authority control of audit and performance provides opportunities to improve value for money and to focus more closely on local priorities. However, there are significant risks to accountability for public money unless new legal and practical arrangements are put in place to uphold the vital principle of auditor independence. Until now the Audit Commission has been the regulator, commissioner and major provider of local government audit services (undertaking 70% of the local government audit and commissioning the remaining 30% under contract from five private audit firms). Under the changes proposed, local government will in future appoint their own auditors. The Government plans to introduce a public audit bill in the autumn. The Committee argues this legislation must set out a number of key principles to govern public audit arrangements in the future: strict adherence to the principle of auditor independence; a majority of independent members on any local audit committee; additional safeguards to ensure the continued effectiveness of public interest reporting; a proportionate and risk based approach to the scope of local government audit - to permit local innovation and application, particularly with regards to local value for money work. The Committee also welcomes the LGA's proposals for sector-led performance management, but calls on the Government to clarify arrangements for intervention in the exceptional cases of serious corporate or service failure. It also repeats its call for the Government to examine the contribution which robust local government scrutiny arrangements could make to improving local government performance.