Gaas Paper

Generally Accepted Auditing Standards
According to Investopedia, Generally Accepted Auditing Standards (GAAS) is 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 (Investopedia, 2012). GAAS are used for auditing private companies like Mars. Mars is the brand name that produce M&M, Pedigree (dog food), and Uncle Ben’s as well as some other brands. Mars Company has to follow a set of generally accepted accounting standards in order to meet guidelines. The GAAS applies to financial, operational, and compliance audits. This paper will explain GAAS, in addition to the affect Sarbanes-Oxley Act (SOX) and Public Company Accounting Oversight Board (PCAOB) have on publicly traded companies.
Elements of Generally Accepted Auditing Standards
In discussing the functions of GAAS, we must look at the three main key points:   General Standards, Standards of Fieldwork and Standard of Reporting. The general standard represents the quality of work and the auditor’s experience. The standards consist of three conditions:
“1) The audit is to be performed by a person or persons having adequate technical training and proficiency as an auditor. 2) In all matters relating to the assignment, independence in mental attitude is to be maintained by the auditor or auditors. 3) Due professional care is to be exercised in the performance of the audit and the preparation of the report” (Boynton, 2006).
In the standards of field work auditors conduct must be approach and professional at all times.   These conditions must show the adequate planning and assistants; in addition a high understanding of entity and control of environmental financial statements.   In connection with these two standards should also include a majority of competent audit evidence to be obtained from audit procedures to perform an opinion about financial statements. The last set of...