Problem
Governmental accounting is very different from financial accounting. The FASB Codification only applies to nongovernmental entities. State and local governments must follow GASB (Governmental Accounting Standards Board) standards, while federal government reporting entities must follow FASAB (Federal Accounting Standards Advisory Board) standards.
A. What are some issues you can think of that might be unique to governmental accounting?
B. Why might a state government require that audited financial statements be prepared at its statewide and local levels?