DISCUSSION

1. What is Generally Accepted Auditing Standards (GAAS)?

Generally accepted auditing standards (GAAS) are a set of systematic guidelines
used by auditors when conducting audits on companies' financial records. GAAS helps to
ensure the accuracy, consistency, and verifiability of auditors' actions and reports. 
2. What are the three categories of GAAS? Explain. 
-General standards: The first three GAAS are general standards that address your qualifications
to be an auditor and the minimum standards for your work product:
 As an auditor, you must have both adequate training and proficiency.
 You are independent in both fact and appearance.
 You exercise due professional care in performing your auditing tasks.
-Standards of fieldwork: The next three GAAS govern how you actually do your job:
 Your work is adequately planned, and all assistants are properly supervised.
 You gain an understanding of the client and its environment, including internal controls,
to assess the risk of material misstatement in the financial statements and to plan your
audit.
 The evidence you gather during the audit is appropriate and sufficient to evaluate
management’s assertions on the financial statements.
-Standards of reporting: The last four GAAS concern information you must consider
prior to issuing your audit report:
 You have to state whether the financial statements are prepared using generally
accepted accounting principles (GAAP).
 Just as important is to report whether GAAP are consistently applied for all
financial accounting. Should this not be the case, you have to report any
departures.
 You also have to make sure that disclosures — any additional information needed
to explain the numbers on the financial statements — are provided.
 Lastly, you have to include your opinion as to whether the financial statements
present fairly in all material respects the financial position of the company under
audit.

References:
 Tuovila, A. (2020, August 28). Generally Accepted Auditing Standards (GAAS).
Retrieved August 31, 2020, from https://www.investopedia.com/terms/g/gaas.asp
 Loughran, M., Part of Auditing For Dummies Cheat Sheet, & About the Book Author
Maire Loughran is a self-employed certified public accountant (CPA) who has prepared
compilation. (n.d.). Generally Accepted Auditing Standards. Retrieved August 31, 2020,
from https://www.dummies.com/business/accounting/auditing/generally-accepted-
auditing-standards/