Government Auditing Standards,published in a document called the Yellow Book,incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities. Which of the following is not one of the extensions?
A) Higher materiality thresholds than in the private sector.
B) Public availability of audit reports.
C) Written evaluation of internal controls.
D) Requirement that auditors have knowledge of government accounting and auditing.

Question

Quizplus · Accepted Answer

The Yellow Book actually requires auditors to use lower materiality thresholds than in the private sector in order to ensure that smaller material misstatements are not overlooked in the audits of public entities. B, C, and D are all extensions required by the Yellow Book for auditing public entities.

Government Auditing Standards,published in a Document Called the Yellow Book,incorporate