Which GAO publication implements FASAB policies?

• A. GAAP
• B. GAO Circulars
• C. GAGAS
• D. GAAS

Answer: (C)

FASAB sets the accounting policies that govern how federal financial statements are prepared and presented. When those statements are audited, the GAO uses its own auditing standards to apply and evaluate those policies consistently across government programs. Those standards are called Generally Accepted Government Auditing Standards (GAGAS), and they provide the framework for conducting, documenting, and reporting government audits in a way that aligns with FASAB policies.

Other options don’t fit as well. GAAP refers to general accounting principles for financial reporting, not a GAO publication that governs audits. GAO Circulars are internal directives for GAO operations rather than the audit framework for applying FASAB policies. GAAS are private-sector auditing standards (AICPA), not the government-wide framework used by GAO.