Generally Accepted Auditing Principles

Topics: Auditing, Audit, Internal control Pages: 4 (1187 words) Published: September 2, 2010
Generally Accepted Auditing Principles

Generally Accepted Auditing Principles

There are many different types of audits including financial statements audit, the operational audit and the compliance audit. Either an internal auditor or an external auditor from another firm can conduct these various audits. “The American Accounting Association defines auditing as a systematic process of objectively obtaining and evaluating the accounts of financial records of a governmental, business, or other entity based on established criteria” (www.referenceforbusiness.com, 2009). Essentially the review is done to enable an accountant to assess the representations of management and to consider whether the financial statements conform to the generally accepted accounting principles, or GAAP.

There are several elements of the general accepted auditing standards or GAAS. Some of the elements of the GAAS include independence in fact and appearance, professional care in performing the audit, internal control evaluation, evidence sufficient to base an opinion, according to GAAP, consistency and the technical training and proficiency of the auditor. All of these elements play equally important roles in the GAAS and all elements should be qualities of an auditor. The auditor is required to make very difficult decisions and to abide by all the standards for their profession. Therefore to be an auditor is a difficult and stressful career that many people will not be able to do.

The elements of the GAAS are very important when pertaining to financial, operational and compliance audits. In financial, operational and compliance audits, it is important to have independence in fact and appearance because the auditor will be held responsible for the information that they provide. Many people rely on the information that auditors provide and the information the auditor provides must not sway from the facts. It is also important that the auditor takes professional care in...
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