Yellow Book Requirements Cpe

However, if individual team members have professional certifications, HQ may require these individuals to regularly report their CPE. For example, I am a CPA from Texas. I must report my CPE hours (including topics and sources) to the Texas State Board of Public Accountancy each year. However, the Texas Board of Accountancy doesn`t know if I earned my hours needed in the Yellow Book. That`s my job. I also have an IIA certification and their requirements are much easier. They simply demand that I promise that I have earned my hours; They don`t want the details of what, when or where. The Yellow Book CPE courses related to this category cover a wide range of topics. Some of them include regulations, trends, legal requirements, guidelines, criteria, etc. These can also cover topics applicable to the purpose of the assignment, such as: educational, environmental, scientific, medical or any type of special topics. It is important to note that if you hold a professional certification such as a CPA, the certification body may ask you to declare your CPE regularly.

For example, your government accounting system may require you to report your CPE loans regularly. However, your auditor will not verify whether or not you meet the requirements of your Yellow Book for UEY in a timely manner. Just write and ask your question about the Yellow Book requirements for EPCs. But I recommend that you read Chapter 4 of the 2018 Yellow Book before contacting them. The GAO has no authority over you (there are no men in yellow coming down to check if you meet the standards!), so you don`t have to be shy. The 2018 revision of the 2018 Yellow Book applies only to statutory audits, attestations and examinations of financial statements for financial years ending on or after 30 June 2020 and to performance audits commenced on or after 1 July 2019. Advance implementation is not permitted. For audits, attestations and performance audits carried out as part of a previous revision of the Yellow Book, see the 2011 revision. For additional questions about the effective dates and implementation of the Yellow Book, please call (202) 512-9535 or email

Okay, let`s define the differences between the 56-hour and 24-hour requirements. So there is an 80% requirement. In addition, there are two other requirements: These requirements are outlined in the GAO Guidelines on GAGAS Requirements for Continuing Professional Development. Any auditor performing work in accordance with GAGAS must perform at least 24 hours of CPE every 2 years, directly related to the government audit, government environment, or the specific or unique environment in which the audited entity operates. Auditors involved in planning, directing, or reporting GAGAS audits, and auditors who are not involved in these activities but charge 20% or more of their time each year for GAGAS audits, should also receive at least 56 additional hours of CPE (for a total of 80 CPE hours per 2-year period) that enhance the auditor`s professional skills to conduct audits. Auditors who are required to complete a total of 80 hours of CPE should complete at least 20 hours of CPE in each year of the 2-year periods. Auditors hired after the start of an audit organization`s 2-year EPC period or originally engaged in GAGAS audits should perform a prorated number of CPE hours. Now let`s compare the general 56-hour requirements with the more specific 24-hour requirements. For example, suppose you are looking at member electricity companies (EMCs) that are subject to the Yellow Book. A class CPE on power systems is eligible for the 24-hour requirement. Or if you are looking at banks subject to Yellow Book requirements (such as FHA loans), a CPE class that deals with loans is eligible. These classes deal with problems that are specific to the environment in which the entity operates.

For technical support regarding the Yellow Book, please call (202) 512-9535 or email If you don`t pass the exams at the eleventh hour and don`t get your credits on time, it can have several negative effects on your professional career. So take the exams with enough time in hand to comfortably meet the requirements of your Yellow Book CPE. You can also ask me, but I`m nowhere near as cool and bossy as the GAO. Write to However, paragraph 4.26 states: “Non-supervisory auditors who devote less than 40 hours of their time per year to engagements performed in accordance with GAGAS may be exempted by the Organization from all EPC requirements set out in paragraph 4.16.” In addition, section 4.27 allows a review body to exclude “temporary college and university students.” Below, we will discuss (1) who is subject to the Yellow Book UEY requirements and (2) which classes of CPE meet these requirements. And the requirements are a bit complicated – so complex that the GAO devoted 17 pages (!) to the requirements of Chapter 4 of the 2018 Yellow Book. No. In accordance with section 4.26, non-supervisory auditors who charge less than 40 hours of their time per year for engagements performed in accordance with GAGAS may be exempt from all EPC requirements.

Professional Standards Updates (PSUs) summarize recently published auditing and accounting standards bodies (PSUs). These updates inform the Yellow Book user community of significant changes to the job requirements. These updates do not set new professional standards and do not reflect the GAO`s official views on these requirements. Users should refer to the original authoritative standards when implementing the standards. The Yellow Book is used by reviewers of government agencies, institutions that receive government awards, and other auditing bodies that conduct Yellow Book audits. It describes the requirements for audit reports, the professional qualifications of auditors and the quality control of the audit body. Auditors of federal, state, and local programs use these standards to conduct audits and prepare reports. Who is subject to the 24-hour rule? If you work on a Yellow Book engagement as an auditor, you are subject to the 24-hour requirement. However, if you are a non-supervisory auditor who works less than forty hours per year on Yellow Book engagements, your auditing body may exempt you from the requirements of the Yellow Book. (See paragraph 4.26 of the Yellow Book.) In addition, examination organizations may exempt students hired temporarily.

(See paragraph 4.27 of the Yellow Book.) Even if you do not have to declare your Yellow Book CIP to anyone, it is extremely important that you keep all documents for at least five years from the date of completion of the programs. In the case of a random audit, you can use these documents to demonstrate that you have scrupulously met your UEY requirements for the Yellow Book audit. One of the most challenging aspects of conducting a Yellow Book audit is compliance with the Yellow Book`s CPE requirements. By the way, CPE stands for professional development. You will also learn about fieldwork standards and receive guidance on how to conduct performance audits by taking Yellow Book CPE courses to meet the Yellow Book`s UEC requirements. These standards include the collection of sufficient appropriate information, the monitoring of personnel, the planning of the audit and the preparation of audit documentation. Meet your Yellow Book requirements 24 hours a day at a great price with Surgent`s Yellow Self-Study Yellow Book package. Chartered accountants who perform work under the GAO Government Auditing Standards are required to conduct a 24-hour CPE every two years on topics directly related to the government audit, the government environment, or the specific or unique environment in which the audited firm operates.

(Check the details of the Yellow Book requirements for UEC) Meet this requirement while mastering hot topics such as GASB No. 74, changes in the Yellow Book, ASU No. 2016-14, leasing and revenue accounting in nonprofits, and more. With Surgent`s Yellow Book package, you can choose 24-hour CPEs from a variety of 8-hour and 4-hour courses in an online download format, for ultimate convenience and flexibility. In a CPA firm, for example, employees can prepare tax returns, develop estate plans and conduct audits. The CPE they earn to help them comply with tax regulations and individual and business certification laws is unlikely to be included in the second category of Yellow Book CIP requirements, as these topics do not contribute to the auditor`s ability to conduct audits. You calculate the hourly requirement on a pro-rata basis based on the remaining full 6-month intervals during your two-year reporting period. For example, hire Joan on May 1, 2021 and the company`s two-year cycle ends on December 31, 2021.

There is still a full period of 6 months. So, if Joan is subject to the 24-hour rule, she multiplies 25% (a six-month period divided by the four six-month periods of the two-year cycle) by 24 to calculate the hours required: 6 hours. Performance audits are contracts that provide conclusions or certainty, subject to an assessment of sufficient and appropriate audit evidence based on established criteria, such as defined operational practices or specific measures and requirements. The internal quality reviewer verifies that the team has received the required CPE at least annually, and the external reviewer verifies that the team maintains records and meets the requirements every three years. Those who care about whether an auditor meets the requirements of CIP are the audit shop leaders, the internal quality control auditor and the peer reviewer.