GENERALLY ACCEPTED AUDITING STANDARDS (GAAS)

GENERALLY ACCEPTED AUDITING STANDARDS (GAAS)

Auditing standard is generally guidelines to aid auditors are fulfilling their professional responsibilities in audit of financial statements. They include consideration of professional qualities such as competence, independence, reporting requirement and evidence. GAAS were developed by the AICPA in 1947, and have remained the same except for minimal •

GENERAL STANDARDS:

i.       The examination is to perform by a person(s) having adequate technical training and proficiency as an auditor.

ii.           In all mater of attitude independent must be maintained by the auditor(s).

iii.       The professional care is to be exercise in the performance of the examination.

 STANDARD OF FIELD WORK

a.     The work is to be adequate planned and if assisted the auditor must properly supervised

b.     For proper audit the auditor must obtain sufficient understanding of internal control structure.

c.      Sufficient competence evidence must be obtained to form the basis for an opinion regarding the financial statement under examination,

STANDARD OF REPORTING

1.        The report shall state whether the financial statement are presented in accordance with (GAAP).

2.        The report shall identify those circumstances in which such principles have not been consistently observed in the current period in relation to preceding period.

3.        Information disclosures in the financial statement are to regarded as reasonably adequate unless otherwise stated in the report.

4.        The report shall either contain an expression of opinion regarding the financial statements taken as a whole assertion of effect that an opinion cannot be expressed. Reason should, be advance for the inability.