Section 5 Auditing Standards

• Library: Prof Liability 2005

As discussed in §3.3 above, accounting principles provide guidance regarding how financial data is compiled into financial statements. On the other hand, auditing standards provide guidance as to the methods used to verify the accuracy of the data used in financial statements. These standards are generally referred to as “Generally Accepted Auditing Standards” (GAAS). GAAS address the quality of the performance rendered by the accountant in auditing an entity. There are ten auditing standards that are interpreted by “Statements on Auditing Standards.” These standards are divided into three groups:

1. General Standards
2. Standards of Field Work
3. Standards of Reporting

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