What is the purpose of the audit standards issued by the GAO?

The audit standards issued by the Government Accountability Office (GAO), known as the Yellow Book, are specifically designed to support the compliance requirements of the Single Audit Act. This act requires audits of states, local governments, and non-profit organizations that receive federal funding to ensure that these entities are using federal funds properly and adhering to federal regulations.

The standards provided by GAO outline the framework for conducting audits of federal programs, ensuring that the audits are performed with integrity, objectivity, and independence. They emphasize the importance of accountability and transparency in government financial management, particularly in relation to the use of federal dollars by various entities.

In contrast, the other options do not accurately reflect the main purpose of the GAO audit standards. Ensuring compliance with financial regulations is part of a broader context but not the specific focus of the GAO standards. Evaluating public company audits pertains more to the auditing standards set by the Public Company Accounting Oversight Board (PCAOB) rather than the GAO. Regulating tax practices falls under the purview of the Internal Revenue Service (IRS) and related tax law rather than audit standards provided by GAO.