Basic Yellow Book Auditor Training: Audit Planning Including Risk Assessment and Fraud Considerations

Author: Robert K Minniti

This course provides foundational Yellow Book auditor training focused on audit planning under the U.S. Government Accountability Office’s Yellow Book, formally known as Generally Accepted Government Auditing Standards (GAGAS). Effective audit planning is critical to audit quality, particularly in government and nonprofit environments where audits must address complex compliance requirements, heightened public accountability, and increased fraud risk. This course equips participants with the practical knowledge needed to plan audits that are risk based, well documented, and aligned with GAGAS requirements.

Participants will learn how to establish audit objectives and scope, obtain an understanding of the audited entity and its environment, and assess risks of material misstatement, including fraud risks. The course places special emphasis on government‑specific fraud considerations—such as improper payments, grant fraud, procurement fraud, and abuse of public resources—and demonstrates how identified risks drive the nature, timing, and extent of audit procedures. Through practical examples and scenario based discussions, attendees will gain confidence designing audit plans that enhance audit effectiveness and defensibility.

Publication Date: June 2026

Designed For
This course is designed for professionals seeking a strong foundation in Yellow Book audit planning and risk‑based auditing.

Topics Covered

• Overview of audit planning requirements under the Yellow Book (GAGAS)
• Establishing audit objectives, scope, and methodology
• Understanding the audited entity, its environment, and applicable compliance requirements
• Internal control considerations during audit planning
• Risk assessment procedures and linkage to audit strategy
• Identifying inherent risk, control risk, and risk of material misstatement
• Fraud considerations in a GAGAS audit
• Government‑specific fraud risks, including improper payments and grant and procurement fraud
• Designing audit responses, including nature, timing, and extent of procedures
• Documentation requirements for planning, risk assessment, and fraud considerations

Learning Objectives

• Describe the objectives and key components of audit planning under GAGAS
• Identify procedures for obtaining an understanding of the audited entity, its environment, and internal controls
• Identify risks of material misstatement, including inherent and control risks, in a government audit context
• Recognize common fraud risk factors and schemes relevant to government entities and programs
• Design appropriate audit responses to identified risks, including fraud risks, in accordance with GAGAS

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (Governmental) (2 hours)

Program Prerequisites
None

Advance Preparation
None