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2024 Yellow Book (GAGAS) Independence & 2 CFR 200 Single Audit Compliance Course

2.0 CPE
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2024 Yellow Book (GAGAS) Independence & 2 CFR 200 Single Audit Compliance Course

Follows the Engagement Partner and Lead Government Auditor on a municipal Single Audit after the 2024 Uniform Guidance revisions take effect, uncovering a self-review threat from non-audit financial statement preparation, an misclassified Type A federal grant program, and $640,000 in unallowable subrecipient expenditures.

Chapter 1 of 4 · Phase I: Evaluating Threats to Independence When Preparing the SEFA & Depreciation Schedules

2024 GAO Yellow Book Independence Framework: Non-Audit Services & SKE Safeguards

Section 1 of 6: Incident Dossier & Stakes17% of Chapter 1
📂 Case Dossier · Phase I: Evaluating Threats to Independence When Preparing the SEFA & Depreciation Schedules

During pre-engagement planning for the City of Evergreen's FY 2024 Single Audit, Engagement Partner Sarah Chen and Lead Government Auditor David Miller reviewed a request from City Finance Director Robert Sterling. Her firm had just been awarded the contract, a significant win, especially with the new $1,000,000 Single Audit threshold under the 2024 Uniform Guidance revisions. A pre-engagement call with City Finance Director, Mr. Robert Sterling, had raised an immediate red flag. Mr. Sterling, citing staff turnover and budget constraints, had casually requested if A&A Partners could 'just help out' by preparing the City's Schedule of Expenditures of Federal Awards (SEFA) and the annual depreciation schedules for their fixed assets. He mentioned, 'It's just a matter of compiling the data, and you guys know the Yellow Book requirements best.' Sarah knew this seemingly innocuous request could jeopardize the entire engagement before it even began, potentially leading to an independence impairment under the 2024 GAGAS Yellow Book.

⚖️ Regulatory Exposure & Engagement StakesThe stakes were high: failing to properly evaluate and safeguard against independence threats could lead to a finding of non-compliance with Government Auditing Standards (GAGAS), jeopardizing the audit's credibility, and potentially resulting in sanctions from regulatory bodies like NASBA or the IRS RPO program, impacting the firm's reputation and ability to perform future government audits.
⏱️ Est. 25 min · 4 Statutory Sections + 1 Forensic Lab