KEMBAR78
Gaap PDF | PDF | Financial Audit | Auditor's Report
Scribd
Upload
160 views4 pages

Gaap PDF

GAAS refers to the set of guidelines and standards that auditors follow when performing audits of companies' financial statements. There are three main categories of GAAS - general standards, standards of fieldwork, and standards of reporting. The general standards refer to the auditor's qualifications, independence, and professional care. The standards of fieldwork cover audit planning, understanding the company, and obtaining sufficient audit evidence. The standards of reporting specify requirements for the auditor's report, including whether the financial statements fairly represent the company in accordance with GAAP. Following GAAS helps auditors perform consistent, accurate, and verifiable audits.

Uploaded by

Y.h. Tariq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
160 views4 pages

Gaap PDF

GAAS refers to the set of guidelines and standards that auditors follow when performing audits of companies' financial statements. There are three main categories of GAAS - general standards, standards of fieldwork, and standards of reporting. The general standards refer to the auditor's qualifications, independence, and professional care. The standards of fieldwork cover audit planning, understanding the company, and obtaining sufficient audit evidence. The standards of reporting specify requirements for the auditor's report, including whether the financial statements fairly represent the company in accordance with GAAP. Following GAAS helps auditors perform consistent, accurate, and verifiable audits.

Uploaded by

Y.h. Tariq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

WHAT IS GAAS

Generally Accepted Auditing Standards, or GAAS are sets of standards against which the
quality of audits are performed and may be judged. Several organizations have developed such
sets of principles, which vary by territory. In the United States, the standards are promulgated by
the Auditing Standards Board, a division of the American Institute of Certified Public
Accountants (AICPA).

Short for Generally Accepted Auditing Standards, GAAS refers to a set of systematic
guidelines used by auditors while performing audits on companies financial statements, thus
ensuring the consistency, accuracy, and verifiability of the actions and reports produced by an
auditor.

10 GENERALLY ACCEPTED AUDITING STANDARDS


As explained by Investopedia, by depending on GAAS, auditors can reduce the possibility of
missing material info. The Generally Accepted Accounting Standards are categorized into the
following sections:

1. General standards include:

i. The auditor must possess sufficient technical training as well as proficiency to carry out
the audit.

ii. The auditor must sustain independence (in fact and appearance) in intellectual attitude
in every matter associated with the audit.

iii. The auditor should essentially exercise due professional care during audit
procedures and the preparation of reports. Moreover, the auditor should assiduously
perform the audit and mention the misleading info, if any, in the reports.

2. Standards of fieldwork

i. The auditor should plan adequately the work besides properly supervising any
assistants.

ii. The auditor must get sufficient understanding of the company and its environment,
also counting its internal control, to evaluate material misstatement risk (either due to
error or fraud), and designing the nature, timing, and extent of future audit procedures.

iii. The auditor should get sufficient audit evidence by carrying out audit procedures to
give a reasonable basis for an opinion related to financial reports under audit.

3. Standards of reporting

i. It is essential for the auditor to report whether the financial statements are accessible in
accordance with GAAP.
ii. The auditor should essentially recognize in the auditors report the circumstances
wherein such principles have not been observed consistently in the current period as
related to the previous period.

iii. On determining the informative disclosures not being reasonably adequate, the auditor
should state the same in his report.

iv. It is essential for the auditor to either express an opinion on financial statements or
state that an opinion cannot be expressed in the auditors report.

Each of these sections is beleaguered with the requirements that must be congregated by the
auditor and the subject company

STRUCTURE OF THE STANDARDS

The purpose of an audit (purpose). To provide financial statement users with an


opinion by the auditor on whether the statements are presented fairly, in all material
respects, in a manner that conforms to an applicable financial reporting framework.

Personal responsibilities of the auditor (responsibilities). These include competence


and capabilities, compliance with appropriate ethical standards, and approaching the
work with appropriate professional skepticism and judgment.

Auditor actions in performing the audit (performance). Perform the work necessary
to be reasonably, but not absolutely, sure that the financial statements are free from
material misstatement due to fraud or error.

Reporting (reporting). Based on the results of the performance of the audit, express an
opinion or state that an opinion cannot be expressed on the financial statements.

AUDITING STANDARDS & ENGAGEMENT PROCESS

You might also like