[Federal Register Volume 63, Number 153 (Monday, August 10, 1998)]
[Notices]
[Pages 42636-42637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21360]


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GENERAL ACCOUNTING OFFICE

[GAO/GAGAS-ED-3]


Government Auditing Standards: Auditor Communication

AGENCY: General Accounting Office.

ACTION: Notice of availability of documents.

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[[Page 42637]]

SUMMARY: The U.S. General Accounting Office (GAO), on the 
recommendation of the Advisory Council on Government Auditing 
Standards, has issued an exposure draft of a proposed revision to 
Government Auditing Standards (GAGAS) titled Government Auditing 
Standards: Additional Documentation Requirements When Assessing Control 
Risk at Maximum for Computer-Related Controls (GAO/GAGAS-ED-3) and is 
seeking public comment. The proposed revision would add a new field 
work standard for financial statement audits prescribing additional 
documentation requirements for (1) the assessment of control risk at 
maximum for assertions significantly dependent on computer applications 
and (2) the basis for concluding that resulting audit procedures are 
designed to effectively achieve audit objectives and appropriately 
limit audit risk. The revision will be effective for financial 
statement audits of periods ending on or after September 15, 1999.

DATES: Comments are accepted through September 30, 1998.

ADDRESSES: A copy of the exposure draft can be obtained on the Internet 
on GAO's Home Page (www.gao.gov) in the Special Publications section. 
Additional copies of these proposed standards can be obtained from the 
U.S. General Accounting Office, Room 1100, 700 4th Street, NW., 
Washington, DC 20548, by calling 202-512-6000, or via FAX 202-512-6061. 
Comments should be both in writing and on diskette (in ASCII format), 
addressed to Robert W. Gramling, Director, Corporate Audits and 
Standards, Accounting and Information Management Division, U.S. General 
Accounting Office, 441 G Street NW., Room 5089, Washington, DC 20548.

FOR FURTHER INFORMATION CONTACT: Robert W. Gramling, 202-512-9406.

SUPPLEMENTARY INFORMATION: In February 1997, the Advisory Council on 
Government Auditing Standards endorsed a revised approach of issuing 
individual standards issue-by-issue as the Council reaches consensus on 
a particular issue, with periodic codification of the standards. This 
revised approach was adopted to provide more timely revision of the 
standards for emerging audit issues. The approach will continue the 
practice of seeking public comments on all draft revisions.
    The American Institute of Certified Public Accountants (AICPA), in 
issuing Statement on Auditing Standards (SAS) No. 78, Consideration of 
Internal Control in a Financial Statement Audit: An Amendment to 
Statement on Auditing Standards No. 55, requires auditors to document 
their basis for conclusions when control risk is assessed below 
maximum. However, SAS No. 78 does not impose a similar requirement for 
assessments of control risk at maximum.
    This proposed standard will help ensure that auditors conducting 
financial statement audits in accordance with Government Auditing 
Standards carefully consider controls related to assertions which are 
significantly dependent on computer applications and appropriately 
limit audit risk related to such assertions. This exposure draft also 
presents conforming changes to GAGAS field work standards for financial 
statement audits to recognize, where applicable, the effect of SAS No. 
78 on GAGAS for internal control.
    The Council will consider the comments in making recommendations to 
the Comptroller General of the United States in finalizing revisions to 
the standards. Publication of the final standard will be announced in 
the Federal Register.
Jeffrey C. Steinhoff,
Director of Planning and Reporting, Accounting and Information 
Management.
[FR Doc. 98-21360 Filed 8-7-98; 8:45 am]
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