Ten Elements of Gaas

Ten Elements of Generally Accepted Accounting Standards

Generally accepted auditing standards (GAAS) were adapted by the AICPA in the late 1940s. The main 10 standards are most commonly used and categorized into three divisions based on their purpose: general standards, standards of field work, and standards of reporting (Boynton & Johnson, 2006).

General Standards The first division of GAAS involves the requirements of the auditor. These include the integrity of work and credentials of the auditor. General standards category holds three standards: adequate technical training and proficiency, independence in mental attitude, and due professional care (Boynton & Johnson, 2006).

Adequate Technical Training and Proficiency This standard involves the schooling that the auditor obtains. The auditor must have schooling from a formal university, practical training and experience, and continued training through his/her career in auditing (Boynton & Johnson, 2006).

Independence in Mental Attitude The second standard states that the auditor must keep his independence from matters influenced by management of the audited company. There should not be any reason to sway from the facts of the audit (Boynton & Johnson, 2006).

Due Professional Care The last general standard outlines the care given by the auditor. He must thoroughly inspect the work and report on findings in a methodical and meticulous manner (Boynton & Johnson, 2006).

Standards of Field Work The second group of standards involves the parameters faced on the job. They include adequate planning and proper supervision, understanding the entity and its environment, and sufficient competent audit evidence (Boynton & Johnson, 2006).

Adequate Planning and Proper Supervision The first standard in this group involves suitable approaches for the audit. Processes, supervision, and strategies must be established prior to arrival at the entity to be audited (Boynton & Johnson, 2006).

Understanding the Entity...