Summary: GAO's standards for government audits are published in a brochure called "Standards for Audit of Governmental Organizations, Programs, Activities and Functions." The need for such standards became critical because of the lack of uniform standards existing and the increase in Federal grants to State and local governments. GAO's objectives in issuing the standards were to define the kind of auditing needed, provide guidelines, and to improve audits conducted by or for State and local governments. A governmental audit is defined as having three parts: financial and compliance, economy and efficiency, and program results. In audits of financial operations and legal compliance, GAO examines financial transactions, accounts, and reports and checks compliance with applicable laws and regulations. Economy and efficiency audits are aimed at making Government operations less costly. The purpose of auditing program results is to find out whether an activity is achieving objectives set for it and to analyze reasons for shortfalls. In order to gain acceptance of the standards, briefings were held with auditors, speeches were given, supplements were issued, and intergovernmental audit forums were created. To meet State government needs, a model audit law for State governments was developed. GAO has increased staff training and acquired personnel with needed expertise to meet its needs for broad scope auditing.
