Government Accountability Office
Issues CPE Guidance

In Apr., the Government Accountability Office issued a CPE document titled, Government Auditing Standards: Guidance on GAGAS Requirements for Continuing Professional Education (GAO-05-568G). This document is a follow-up to a June 2003 revision the GAO made to Government Auditing Standards (also known as the “Yellow Book”) that modified, among other things, its continuing professional education requirements. The GAO document provides guidance to auditors and audit organizations in implementing the CPE requirements of Government Auditing Standards. The fundamental difference related to CPE in the 2003 Government Auditing Standards from the 1994 revision was that the 80 hours of CPE to be completed every 2 years should “directly enhance the auditor’s professional proficiency to perform audits and/or attestation engagements.” The 1994 revision called for training that “contributes to the auditor’s professional proficiency.” The new guidance document expands and modernizes the types of programs and the list of subjects and topics that could satisfy CPE requirements under Government Auditing Standards. It also replaces the Apr. 1991 document, entitled Interpretation of Continuing Education and Training Requirements. Concurrently with issuance of this document, the GAO issued a technical amendment to paragraph 3.45 and related footnotes of the CPE requirements contained in the Competence standard of the 2003 revision of Government Auditing Standards. Specifically, as amended, auditors who only are involved in performing field work but not involved in planning, directing or reporting on the audit or attestation engagement, and who charge less than 20% annually of their time to audits and attestation engagements conducted under generally accepted government auditing standards, are required to take 24 hours of training in each 2-year period in subjects and topics directly related to government auditing, the government environment or the specific or unique environment in which the audited entity operates but do not have to comply with the remainder of the 80-hour CPE requirement. The technical amendment and the GAO guidance document are effective for CPE measurement periods beginning on or after June 30, 2005. Early application is encouraged. Access the new GAO guidance document at www.gao.gov/govaud/ybcpe2005.pdf. The GAO also has prepared a summary of major changes from the previous 1991 CPE Interpretation that can be found at www.gao.gov/govaud/cpemc2005.pdf.

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