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Auditors performing work under GAGAS need to complete 80 hours of CPE every two years with a minimum of 20 hours each year. The MNCPA offers Yellow Book credit for select seminars and conferences.
One of the toughest aspects of doing a Yellow Book audit is complying with the Yellow Book CPE requirements. CPE stands for continuing professional education, by the way. And the requirements are a little bit involved – so involved that the GAO dedicated 17 pages (!) to the requirements in chapter 4 of the 2018 Yellow Book.
The Yellow Book CPE requirement can be divided into two buckets: one is 56 hours and the second is 24 hours, making 80 hours of CPE every 2 years. Previously, no specific requirement was made regarding government audits, but in 2024, Yellow Book introduced mandatory CPE hours.
- Overview
- The 24-Hour Requirement – Who Is subject?
- The 56-Hour Requirement – Who Is subject?
- What Classes Qualify For Yellow Book CPE?
- The 56-Hour Rule – Classes That Qualify
- The 24-Hour Rule – Classes That Qualify
- Two-Year Cycle
- Carryover Credit
Paragraph 4.16 of the Yellow Book states “Auditors who plan, direct, perform engagement procedures for, or report on an engagement conducted in accordance with GAGAS should develop and maintain their professional competence by completing at least 80 hours of CPE in every 2-year period.” Nevertheless, Paragraph 4.26 states “nonsupervisory auditors w...
Who is subject to the 24-hour requirement? If you work on a Yellow Book engagement as an auditor, you are subject to the 24-hour requirement.Even so, if you are a nonsupervisory auditor that works less than forty hours annually on Yellow Book engagements, your audit organization can exempt you from Yellow Book requirements. (See paragraph 4.26 of t...
Who is subject to the 56-hour requirement?Auditors who are involved in: 1. Planning, 2. Directing, or 3. Reporting These are usually partners, managers, and in-charges. Additionally, the 56-hour requirement applies to auditors who are not involved in planning, directing, or reporting but charge 20 percent or more of their annual time to GAGAS engag...
Paragraph 4.21 of the Yellow Book states, “Determining what subjects are appropriate for individual auditors to satisfy the CPE requirements is a matter of professional judgment to be exercised by auditors in consultation with appropriate officials in their audit organization.” Moreover, there are differences in the 56-hour requirement and the 24-h...
The 56-hour rule is broad, encompassing any CPE that enhances the auditor’s professional expertise to conduct engagements. So, CPE classes about better writing, for example, would qualify. Paragraph 4.24 of the Yellow Book provides the following as examples of acceptable topics: 1. Subject matter categories for the 24-hour requirement listed in par...
Each auditor performing work under GAGAS should complete, every two years, at least twenty-four hours of CPE that directly relates to government auditing, the government environment, or the specific or unique environment in which the audited entity operates. Paragraph 4.23 of the Yellow Book provides the following as examples of acceptable topics: ...
An audit organization can adopt a standard two-year period for all of its auditorsto simplify the administration of CPE requirements. But can you carry over excess CPE credit earned in the two-year period?
Auditors are not allowed to carry over hours in excess of the 24-hour or 56-hour ruleto the next reporting period. And what are the Yellow Book CPE requirements for a new employee?
- 12 min
The Yellow Book provides options for how to establish the two-year CPE periods, such as set two-year periods (e.g., 2020-2021, 2022-2023, etc.) or rolling two-year periods (e.g., 2020-2021, 2021-2022).
This course is designed to help you understand and effectively apply these requirements. Major Topics: Understanding who is and is not subject to the 24-hour and 56-hour Yellow Book CPE requirements; Evaluating whether certain topics and training qualify or do not qualify toward the 24-hour and 56-hour Yellow Book CPE requirements
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May 13, 2024 · To maintain compliance with Yellow Book CPE requirements, auditors are required to complete 80 hours of CPE every two years. Of those 80 hours, a minimum of 20 hours should be completed in each year (meaning auditors shouldn't try to get all 80 hours in the same year). Also, 24 hours of the 80 hours should be designated as "government CPE."
