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GAAS

The document outlines standards for auditing, field work, and reporting. It states that auditors must be technically competent and independent. They must exercise due care in planning the audit and supervision. Auditors must obtain an understanding of internal controls and gather sufficient evidence through inspection, observation, and confirmations to issue an opinion on the financial statements. The audit report should state if financials follow GAAP, identify inconsistencies, and deem disclosures as adequate or note otherwise. It must include an opinion on the statements or state an opinion cannot be given and reasons why.

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Mary Rose Mendoza
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21 views

GAAS

The document outlines standards for auditing, field work, and reporting. It states that auditors must be technically competent and independent. They must exercise due care in planning the audit and supervision. Auditors must obtain an understanding of internal controls and gather sufficient evidence through inspection, observation, and confirmations to issue an opinion on the financial statements. The audit report should state if financials follow GAAP, identify inconsistencies, and deem disclosures as adequate or note otherwise. It must include an opinion on the statements or state an opinion cannot be given and reasons why.

Uploaded by

Mary Rose Mendoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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General Standards

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.
Standards of Field Work
1. The work is to be adequately planned and assistants, if any,
are to be properly supervised.
2. A sufficient understanding of internal control is to be obtained
to plan the audit and to determine the nature, timing, and
extent of tests to be performed.
3. Sufficient appropriate evidential matter is to be obtained
through inspection, observation, inquiries, and confirmations to
afford a reasonable basis for an opinion regarding the financial
statements under audit.
Standards of Reporting
1. The report shall state whether the financial statements are
presented in accordance with generally accepted accounting
principles (GAAP).
2. The report shall identify those circumstances in which such
principles have not been consistently observed in the current
period in relation to the preceding period.
3. Informative disclosures in the financial statements are to be
regarded as reasonably adequate unless otherwise stated in
the report.
4.

The report shall contain either an expression of opinion


regarding the financial statements, taken as a whole, or an
assertion to the effect that an opinion cannot be expressed.
When an overall opinion cannot be expressed, the reasons

therefore should be stated. In all cases where an auditors


name is associated with financial statements, the report should
contain a clear-cut indication of the character of the auditors
work, if any, and the degree of responsibility the auditor is
taking.

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