Gaas

Generally Accepted Auditing Standards

ACC 491 – Contemporary Auditing I

Generally Accepted Auditing Standards

AICPA in the 1940s established the Generally Accepted Auditing Standards (GAAS) (Boynton & Johnson, 2006). Presently the GAAS are part of the Statements on Auditing Standards. They consist of three categories of standards with ten total standards. GAAS coincides with the Sarbanes-Oxley Act of 2002 and the Public Companies Accounting Oversights Board. The elements of the GAAS, application to the three types of audits, effect of the SOX act and PCAOB on publicly traded companies, and additional requirements of the SOX act and PCAOB are explained. Also, how these topics relate to AAA is explained.

Elements of the GAAS

The Generally Accepted Auditing Standards (GAAS) incorporate 10 standards (Boynton & Johnson, 2006). These standards are used when evaluating auditors’ work and are also used by the court of law. Three categories hold the ten standards. The categories consist of general standards, standards of field work, and standards of reporting.

General standards include three of the 10 standards. An individual with adequate technical training and proficiency must perform audits. An independent attitude is to be maintained in all aspects of the audit. The audit and audit report are to be held in a professional manner (Boynton & Johnson, 2006).

Standards of field work hold the next three standards. Accurate planning must be used along with proper supervision of any assistants. Understanding the internal control, and environment is required. Understanding the environments means the risk of material misstatement, whether error or fraud and the need for future audit procedures will follow. Appropriate audit evidence is to be gained through audit, which will result in acceptable support for the opinion resulting from the audit (Boynton & Johnson, 2006).

Standards of reporting hold four of the 10...