What does GASB believe is necessary before mandating SEA reporting standards?

GASB, or the Governmental Accounting Standards Board, emphasizes the importance of empirical evidence and practical experience before establishing mandatory reporting standards for Single Audit Engagements (SEA). By advocating for further experimentation, GASB acknowledges the need for conducting pilot programs or trials that can provide data and insights about the proposed SEA reporting standards. These experiments allow for testing the feasibility, benefits, and potential challenges associated with implementing new standards. The goal is to ensure that any new requirements are not only theoretically sound but also practically applicable and beneficial for financial reporting in a governmental context. This approach helps smooth the transition to new standards by allowing for adjustments based on real-world findings, ultimately leading to more effective and relevant reporting practices.