What organization issues the Generally Accepted Government Auditing Standards (GAGAS)?

The Generally Accepted Government Auditing Standards (GAGAS), often referred to as the Yellow Book, are issued by the Government Accountability Office (GAO). GAGAS provides a framework for conducting audits of government agencies and programs, ensuring accountability and transparency in the use of public resources.

The GAO, as a part of the legislative branch of the U.S. government, is tasked with evaluating the use of public funds and promoting efficient government operations through comprehensive audits. The establishment of GAGAS by the GAO helps auditors maintain a high level of integrity and quality in government audits, which is crucial for fostering public trust in government operations.

The other organizations mentioned have different roles and responsibilities. For example, the Financial Accounting Standards Board (FASB) focuses on private sector financial accounting and reporting standards, while the Governmental Accounting Standards Board (GASB) sets accounting standards specifically for state and local governments. The Federal Auditing Standards Advisory Board does not issue auditing standards itself; instead, it provides recommendations related to federal auditing practices. Thus, the GAO is the appropriate organization tied to the development and issuance of GAGAS.