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¶ … Auditing Operating Standards
According to the article, GAAS were eight standards written as short statements. Over the years, it is shown that the eight standards have been integrated by further requirements and explanations in the CICA recommendations handbook. The statements have been reformed to incorporate professional ethical requirements to govern relevant accounting organizations. These amendments have been made consistent with the international standards (American Institute of Certified Public Accountants, 2009). GAAS is an independent body aiming to conduct audits in accordance with the American Auditing Standards. It establishes the overall responsibility of auditors in the process of conducting audits. GAAS provides a series of concepts and principles, and a list of audits fundamental to auditing financial statements. Therefore, GAAS can be defined as sets of standards from which quality of audits is judged or may be performed.
Purpose of GAAS
The purpose of GAAS is to identify the key principles and objectives of auditing financial statement. These standards have been written...
Additional explanations may include illustrations of appropriate procedures for defined contexts. The standards are organized to parallel the critical thinking concepts under professional judgment. The goal of GAAS is to create a set of standards, which are logically organized and to communicate the reasoning of these standards to auditors (Delaney & Feller, 2011). If an audit fails to achieve a relevant GAAS objective, auditors must consider if the overall objectives of the audits, as stipulated in GAAS can be attained. The GAASs are issued regularly. The goals are consistent with the overall GASS objectives. For the purpose of all practices, such consistencies ensure that each GAAS goal is realized. Any auditor of financial statements who fails to abide by the GAAS guidelines could be judged as performing deficient audits.
Ten GAAS by major category
There are 10 GAAS standards: three fieldwork…
References
American Institute of Certified Public Accountants. (2009). Generally accepted auditing standards, their significance and scope. New York: A.I.A.
Giove, F.C. (2012). The essentials of auditing. Piscataway, N.J: Research and Education Association.
Delaney, P.R., & Feller, A.L. (2011). Wiley CPA examination review: 38th edition, 2011-2012. Hoboken, N.J: John Wiley & Sons.
International Financial Reporting Standards (IFRS) Generally Accepted Accounting Principles (U.S. GAAP) US GAAP is the general accounting principles, standard, and procedures that the U.S. companies follow to prepare their financial statements. GAAP has combination of accepted standards that the companies should follow when recording and reporting their accounting information. For example, GAAP has set up the rules that companies should follow when preparing the financial data such as balance sheet, revenue recognition,
MICROSOFT: No terrorist is going to try to blow up Microsoft; no oil products are needed to run computer hardware and software; computers run the world of commerce; and Bill Gates owns a huge percentage of all things computer software-related, so the Microsoft steamroller is a great investment and not as vulnerable to world conditions as are the first two companies reviewed in this section. One final conclusion: for EXXONMOBIL, albeit
Dole and Nestle Generally Accepted Accounting Principles (U.S. GAAP) When it comes to the preparation as well as presentation of financial statements in the United States, there are a number of accounting procedures and rules used by entities in an attempt to enhance a certain level of consistency. These rules and procedures are referred to as U.S. GAAP. Essentially, U.S. GAAP contributes towards the enhancement of the legitimacy and truthfulness of an
Accounting GAPP, or "generally accepted accounting principles," has very specific meanings for the accounting profession. Like many other fields, these are best practice principles, and they both govern the standards of accountants and guide in licensing. They were designed so that there was a more even playing field, level of transparency, and trust in the accounting industry (see, for example, www.fasab.gov/accepted.html). While not always absolutes, these types of guidelines are a
The balance sheet includes two main categories, assets and liabilities and shareholders' equity. Both of these are in turn split into current assets and other assets. In terms of current assets, all three companies include inventory, cash and cash equivalents and receivables, while the liabilities cover short- and long-term debt, as well as the shareholders' equity. The cash flow statement includes the three different categories, cash flows from operating activities, cash
awarding audit contracts by U.S. government departments and agencies Audit Management Red Rationale for and Objectives of the project main and secondary Desktop or literature search Rationale for Search Methodology LITERATURE/DESKTOP RESEARCH Authoritative sources Desktop Findings Justification for audits Evolving role of auditors Types of audit contracts Understanding the Audit Process Best practices and benchmarking Terminology Case Studies Audit management is a fundamental element in government accountability, control and performance management. Certainly there is justification within the Federal government to conduct audits of contracts for the