The Legislative Audit Council operates under the requirements of generally accepted government auditing standards (GAGAS) published by the U.S. Government Accountability Office because they are recognized as a national benchmark for government performance auditing.
The GAGAS professional standards (known as the "Yellow Book") provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards also provide the foundation for government auditors to lead by example through the audit process.
Adopting the Yellow Book standards requires a peer review at least once every three years but does not require that it be conducted by any specific organization. The term peer review is commonly used to describe the formal process for monitoring compliance with quality control policies and procedures. The process is also known as a quality control review or quality assessment review.
A peer review team is engaged by either the National Association of State Auditors, Comptrollers, and Treasurers or the National Conference of State Legislatures to perform the review. Each member of the peer review team is required to be independent of the organization and must be qualified to perform the review. The team evaluates the organization’s internal quality control policies and procedures and selects audits and attestation engagements to evaluate whether the organization followed its internal quality control policies and procedures when performing those engagements. The results of the team’s evaluation are submitted in a peer review report.