Generally Accepted Auditing Standards Paper

In: Other Topics

Submitted By punkyn
Words 1038
Pages 5
Suretta Smith

ACC/491

Generally Accepted Auditing Standards Paper

September 25, 2012

Instructor: Santos Alarcon, Jr.

Abstract

The purpose of this paper will be to describe the nature and functions of auditing. The following will be addressed in this paper: description of the elements of the Generally Accepted Auditing Standards (GAAS), description how these standards apply to financial, operational, and compliance audits, explanation of the effect that the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board (PCAOB), will have on audits of publicly traded companies and the discussion on the additional requirements that are placed on auditors from this Act, and the actions of the PCAOB.

The generally accepted auditing standards (GAAS) were implemented by the Public Company Accounting Oversight Board (PCAOB), in April of 2003. The standards were also adopted by the Auditing Standards Board of the American Institute of Certified Public Accountants, which consists of ten standards that establishes the framework for conducting audits. However, the auditing standards are not detailed but guidance on what should be included in the financial statements (Boynton & Johnson, 2006). The GAAS consist of three categories that incorporate the ten standards which are general standards, standards of field work, and standards of reporting. General standards. under the general standards category, it informs about the characteristics of adequate training, mental attitude and the due professional care that an auditor must exhibit (Boynton & Johnson, 2006). Standards of field word. gives details of what must be done before an audit can be done. The work must be sufficiently planned, a adequate understanding of the entity and its environment, including its internal controls, must be obtained to assess the risk of material…...

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