2025 State and Local Governments - Audit and Accounting Guide

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Accounting and auditing for state and local governments

An essential tool for auditors of governmental entities of all sizes, this guide helps both new and experienced auditors to:

• Understand GAAP applicable to the financial statements of state and local governments.
• Audit and report on those financial statements in accordance with GAAS.

Guidance and updates

This guide is based on pronouncements issued or cleared by GASB and contains a small amount of category B accounting guidance. This edition of the guide has been updated for the following:

• GASB Statement No. 102, Certain Risk Disclosures
• GASB Statement No. 103, Financial Reporting Model Improvements
• GASB Statement No. 104, Disclosure of Certain Capital Assets
• SAS No. 146, Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards

This edition also includes significant enhancive revisions related to:

• Examples of assertions the auditor may determine to be relevant assertions.
• Examples of sources of potential misstatement at the assertion level.
• Auditing leases, subscription-based IT arrangements, public-private and public-public partnerships, and availability payment arrangements.
• AU-C section 315 auditing guidance adapted for governmental entities.
• Examples of inherent risk factors in the governmental environment.
• An example of an investment type having a higher valuation risk.
• Auditing alternative investments.

Who Will Benefit

• Auditors of the basic financial statements of a state or local government in accordance with GAAS
• Finance personnel of a state or local government responsible for financial reporting

Key Topics

• Guidance to solve complex accounting and reporting issues
• Newly issued authoritative accounting and auditing standards
• Example audit procedures