The Government Accountability Office has made revisions to the “Green Book”, officially titled Standards for Internal Control in the Federal Government, as part of efforts to help federal managers strengthen accountability in achieving agencies’ missions.
“The updated standards will help federal agencies bolster their internal control systems to prevent and prepare for risks in all areas, especially those increasingly susceptible to fraud, improper payments, and information security threats,” Gene Dodaro, comptroller general of the U.S. and head of GAO, said in a statement published Thursday.
“To ensure accountability and transparency of federal funds, especially in crisis situations where money is being spent quickly, these standards require clarification and modernization to keep up with changing risk environments. I want to thank those involved in the revision process, including the Advisory Council and all those who submitted public comment,” added Dodaro.
What Is the Purpose of GAO’s Green Book?
The Green Book establishes the standards and provides a framework for designing, implementing and operating an effective internal control system.
Auditors, program and financial managers, and compliance officers use the Green Book as a key resource to ensure the effective use of public resources.
What Are the Changes to the Green Book?
Key changes to the document include:
- The need to consider risks related to improper payments and information security when identifying, analyzing and responding to risks
- Documentation of the results of risk assessments
- Documentation of a change assessment process so that the internal control system can be quickly adapted to respond to significant changes as they occur
- Two new appendixes that provide information that management can use for effective internal control systems to address risks, including areas related to improper payments, fraud and information security
The 2025 revision to the Green Book highlights preventive control activities and management’s responsibility for internal control at all levels. It also includes updates that clarify the standards’ intent and continue harmonization with the Internal Control-Integrated Framework the Committee of Sponsoring Organizations of the Treadway Commission, a.k.a. COSO.
