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.

A follow up on the identification of the State¿s implementation of the Recovery Act as a high-risk issue area. Although some depts. have exhibited more progress than others, none of the four depts. assessed ¿ Education, Health Care Services, Employment Development, and Social Services ¿ are fully prepared to administer Recovery Act funding. Rep. from each of the 4 depts. generally stated that they intend to rely on internal controls already in place for existing fed. programs to administer Recovery Act funding. However, 30 internal control weaknesses were found related to certain compliance requirements and fed. programs for which the four depts. assessed expect to receive Recovery Act funds in FY 2008¿09 and 2009¿10. Illustrations.