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Individual Assignment: Generally Accepted Auditing Standards Paper By: Stacy Munns
ACC/ 491
Professor Richard Cochran
Due: December 3, 2012

Introduction: History of Auditing
It is stated that “Auditing is based on the assumption that financial statement data are verifiable.” (Boynton & Johnson, 2006) The real reason of auditing didn’t really come until “the advent of the Industrial Revolution, from 1750 to 1850, that auditing began its evolution into a field of fraud detection and financial accountability.” (www.ehow.com)As a result of the implementation of business management, came the Generally Accepted Auditing Standards or GAAS. Though these standards were not created or came along until the late 1940’s, by the members of the AICPA, “They have since been incorporated into the Statements on Auditing Standards.” (Boynton & Johnson, 2006) Elements of the Generally Accepted Auditing Standards

To describe the “elements” of the GAAS, is to look at the “AU Section 201: November 1972” publication, where it is stated, “The general standards are personal in nature and are concerned with the qualifications of the auditor and the quality of his work as distinct from those standards which relate to the performance of his field work and to his reporting.” (AICPA)

Starting with the “General Standards” the first standard being, “Adequate Technical Training and Proficiency,” this is stating that “The audit is to be performed by a person or persons having adequate technical training and proficiency as an auditor.” (Boynton & Johnson, 2006) Then the second standard being, “Independence in Mental Attitude,” this states “In all matters relating to the assignment, independence in mental attitude is to be maintained be the auditor or auditors.” (Boynton & Johnson, 2006) And then the last standard being, “Due Professional Care”, this states, “Due professional care is to exercised in the performance of the audit and the preparation of the report.”...
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