DEFINITION of 'Generally Accepted Auditing Standards - GAAS'
A set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring the accuracy, consistency and verifiability of auditors' actions and reports.
INVESTOPEDIA EXPLAINS 'Generally Accepted Auditing Standards - GAAS'
By relying on GAAS, auditors can minimize the probability of missing material information. GAAS are divided into these main sections:
1) General standards
2) Standards of fieldwork
3) Standards of reporting
Each section is littered with requirements that the auditor and the subject company must meet. In short, an auditor must adequately plan the audit in advance, be independent of the client at all times, and always obtain reliable evidence. The companies must present their financial statements in accordance with GAAP, remain consistent in their reporting, and explicitly disclose all pertinent information.
A method of income reporting that includes the total non-owner ...
A critical report on the U.S. accounting profession released ...
A representation that particular facts are believed to be accurate ...
1. An unbiased examination and evaluation of the financial statements ...
Recorded in the annual report, the auditor's report tests to ...
The common set of accounting principles, standards and procedures ...