Yellow Book CPE Requirements
The question we get most frequently is “What are the Yellow Book CPE requirements"? The flexibility of government Continuing Professional Education (CPE) may surprise you. Contrary to its name, government CPE does not necessarily have to focus solely on government-related topics.
The Yellow Book CPE requirement is 24 hours of CPE every two years.
The term "government CPE" is a broad label that doesn't encompass all possible subjects, much like most catch-all terms. According to the GAO's Yellow Book, auditors are required to complete 80 CPE hours every two years, with 24 hours designated as government CPE. Auditors should complete at least 20 hours of CPE in each year of the 2-year period (YB 4.16-4.17).
The 24-hour requirement has three subcategories
1. Government environment: This encompasses a wide range of potential topics including courses on GAGAS, the Green Book, GASB, FASB, FASAB, and government ethics.
2. Government auditing: This encompasses topics such as performance auditing and information technology auditing topics. Most courses offered by Parker CPE fall into this category.
3. Specific or unique environment of the audited entity: This subcategory doesn't exclusively focus on the government. For example, if an auditor is assigned to audit investments at a state retirement system, they may attend a class on trading investments in large institutions. The emphasis is on the specific environment of the audited entity.
What about the other 56 hours?
The other 56 hours must directly enhance the auditor’s professional expertise to conduct engagements. This can include CPE that falls within the three subcategories mentioned previously but also includes topics such as managing time, leadership, procurement, software, and economics. See the Yellow Book section 4.24 for more examples of subject matter that would directly enhance auditors’ professional expertise to conduct engagements.
While visiting Parker CPE is not necessary to fulfill your Yellow Book CPE requirements, it can be a useful resource. However, there are various ways to satisfy the government CPE requirement. The purpose of this requirement is to continually enhance our knowledge and skills throughout our careers, benefiting both ourselves and the public.
Suitable CPE subjects
Ultimately, your audit organization determines the type of training required, as they cover the costs. Auditors should exercise professional judgment and consult with appropriate officials within their organization to determine suitable CPE subjects. Factors to consider include the knowledge, skills, and abilities required for their roles and the expected future engagements. It is the audit organization's responsibility to decide if a subject qualifies as acceptable for its auditors. Audit organizations should also be mindful of the requirement to maintain documentation of each auditor’s CPE (YB 4.18).
Although a class on scrapbooking may be interesting, it may not directly contribute to your assigned audit work. Additionally, peer reviewers, who assess CPE compliance every three years, may raise concerns if the courses you take are not relevant to your audit responsibilities.
Does everyone need Yellow Book CPE?
No! Generally, support staff and interns are exempt. Nonsupervisory auditors who charge less than 40 hours of their time annually to engagements conducted in accordance with GAGAS may be exempted from all CPE requirements.
There are also special exemptions not limited to members of the military, individuals returning from extended absences, and individuals newly assigned to Yellow Book work.
The GAO is actually very flexible when it comes to meeting the Yellow Book CPE requirements.
Need your 24 hours of government CPE?
Check out our self-study CPE bundle! It includes 24 hours of Yellow Book CPE that is specifically designed for government performance auditors and includes some of our most popular E-Books and video courses.