Generally Accepted Auditing Standards

Generally Accepted Auditing Standards

Generally Accepted Auditing Standards
“Auditing plays a vital role in business, government, and our economy” [   (Boynton, W. C., & Johnson, R. N., 2006, p. 5) ]. Investors and creditors rely on the assurances provided by both internal and external audits that use the   Generally Accepted Auditing Standards (GAAS), the Sarbanes-Oxley Act of 2002 (SOX), and the Public Company Accounting Oversight Board (PCAOB). These standards and regulations define both the audit and the auditor whether performing financial, operational, or compliance audits.  
Audit Types
The three main types of audits are financial statement, compliance, and operational. Financial statement audits require obtaining and evaluating evidence regarding presentation of financial position, operations result, and cash flows in an attempt to express an opinion regarding their conformity to GAAP. Compliance audits require obtaining and evaluating evidence regarding certain financial or operational activities in an attempt to express an opinion regarding their conformity to specified rules, regulations, or conditions. Operational audits require obtaining and evaluating evidence regarding the efficiency and effectiveness of operational activities in relation to specified objectives.
Generally Accepted Auditing Standards (GAAS)
The 10 generally accepted auditing standards (GAAS) were originally created by the American Institute of Certified Public Accountants (AICPA) in the late 1940s, having since been incorporated into the Statements on Auditing Standards (SAS), were created to provide guidance and a conceptual framework for conducting audits. The GAAS are sorted into three categories: General Standards, Standards of Field Work, and Standards of Reporting.
General Standards
Adequate Technical Training and Proficiency has three factors: formal university education, practical training and experience in auditing, and continuing professional education...