Generally Accepted Auditing Standards Paper, Week 1, Notes

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Generally Accepted Auditing Standards Paper
Write a 700- to 1,050-word paper in which you explain the nature and functions of auditing. Relate your explanation to the audit functions in your organization, or an organization with which you are familiar. In your paper, be sure to address the following:

Describe the elements of the Generally Accepted Auditing Standards (GAAS). Broad rules and guidelines promulgated by the AICPA's AuditingStandards Board. CPAs employ GAAS in preparing for and performing audits of a client's financial statements. The guidelines include references to the auditor's qualifications (general standards), audit field work (statements of field work), and reporting the audit results (standards of reporting). The broad standards are backed by detailed interpretative literature. An auditor unable to express an opinion on the financial statements must give reasons. A CPA who does not conduct an examination in accordance with GAAS can be held in violation of the AICPA's Code of Professional Ethics and face legal action by affected parties.

Read more: http://www.answers.com/topic/generally-accepted-auditing-standards#ixzz2MuPoCqV3 A set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring the accuracy, consistency and verifiability of auditors' actions and reports.

Read more: http://www.investopedia.com/terms/g/gaas.asp#ixzz2MuQZ4v4a *

Describe how these standards apply to financial, operational, and compliance audits. By relying on GAAS, auditors can minimize the probability of missing material information. GAAS are divided into these main sections:

1) General standards
2) Standards of fieldwork
3) Standards of reporting

Each section is littered with requirements that the auditor and the subject company must meet. In short, an auditor must adequately plan the audit in advance, be independent of the client at all times, and always obtain reliable evidence. The companies...
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