Lesson: GAAS vs. GAGAS vs. Single Audits

In this lesson, Nick Palazzolo compares and contrasts the three main standards auditors must follow when conducting audits - GAAS (Generally Accepted Auditing Standards), GAGAS (Generally Accepted Government Auditing Standards), and single audits. He discusses when each set of standards needs to be followed, particularly when reporting on the fair presentation of an entity's financial statements as a whole. The lesson also delves into when to apply single audit rules for nonfederal entities that expend $1,000,000 or more in federal awards during a fiscal year (the threshold for fiscal years beginning on or after October 1, 2024) and emphasizes materiality evaluation and compliance reporting for each major federal program. Lastly, Nick explains the peer review requirements for each set of standards and how these reviews ensure compliance with professional and governmental standards.