[Federal Register Volume 66, Number 138 (Wednesday, July 18, 2001)]
[Rules and Regulations]
[Page 37406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17932]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1773

RIN 0572-AB62


Policy on Audits of RUS Borrowers; Generally Accepted Government 
Auditing Standards (GAGAS)

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of confirmation of direct final rule.

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SUMMARY: The Rural Utilities Service (RUS) hereby gives notice that no 
adverse comments were received regarding the direct final rule 7 CFR 
part 1773, Policy on Audits of RUS Borrowers; Generally Accepted 
Government Auditing Standards (GAGAS), and confirms the effective date 
of the direct final rule.

DATES: The direct final rule published in the Federal Register on May 
21, 2001 (66 FR 27833) is effective July 5, 2001.

FOR FURTHER INFORMATION CONTACT: Richard Annan, Chief, Technical 
Accounting and Auditing Staff, Program Accounting Services Division, 
Rural Utilities Service, U.S. Department of Agriculture, 1400 
Independence Ave., SW., STOP 1523, Washington, DC 20250-1523. 
Telephone: 202-720-5227.

Background

    The rule amends Part 1773 to incorporate two amendments to 
Generally Accepted Government Auditing Standards (GAGAS) adopted in 
1999 by the General Accounting Office. Among other requirements the 
GAGAS amendments require the auditor to document in the working papers 
the basis for assessing risk when certain assertions are significantly 
dependent on computerized information systems; expands the requirements 
for the auditor's communication with the borrower; replaces the term 
irregularities with the term fraud; and requires the auditor to 
emphasize in the auditor's report the importance of the report on 
compliance and on internal control over financial reporting. In 
addition to the GAGAS amendments, this rule corrects errors and 
omissions in previous versions of Part 1773.

Confirmation of Effective Date

    This is to confirm the effective date of July 5, 2001, of the 
direct final rule, 7 CFR Part 1773, Policy on Audits of RUS Borrowers; 
Generally Accepted Government Auditing Standards (GAGAS), published in 
the Federal Register on May 21, 2001, at 66 FR 27833.

    Dated: July 12, 2001.
Blaine D. Stockton,
Acting Administrator, Rural Utilities Service.
[FR Doc. 01-17932 Filed 7-17-01; 8:45 am]
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