According to the general standards in generally accepted government auditing standards:
The following auditing standard has been rescinded effective as of December 31, 2016 pursuant to SEC Release No. 34-75935, File No. PCAOB-2015-01 (September 17, 2015). See PCAOB
Release No. 2015-002. An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards (GAAS). Auditing standards provide a measure of audit quality and the objectives to be achieved in an audit. Auditing procedures differ from auditing standards. Auditing procedures are acts that the auditor performs during the course of an audit to comply with auditing standards. The general, field work, and reporting standards (the 10 standards) approved and adopted by the membership of the AICPA, as amended by the AICPA Auditing Standards Board (ASB), are as follows: General Standards
Standards of Field Work
[The following paragraph is effective for audits of fiscal years beginning on or after December 15, 2010. See PCAOB Release No. 2010-004. For audits of fiscal years beginning before December 15, 2010, click here.]
Standards of Reporting
.03Rule 202, Compliance With Standards, of the AICPA Code of Professional Conduct [ET section 202.01], requires an AICPA member who performs an audit (the auditor) to comply with standards promulgated by the ASB. fn 1 The ASB develops and issues standards in the form of Statements on Auditing Standards (SASs) through a due process that includes deliberation in meetings open to the public, public exposure of proposed SASs, and a formal vote. The SASs are codified within the framework of the 10 standards. .04The auditor should have sufficient knowledge of the SASs to identify those that are applicable to his or her audit. The nature of the 10 standards and the SASs requires the auditor to exercise professional judgment in applying them. Materiality and audit risk also underlie the application of the 10 standards and the SASs, particularly those related to field work and reporting. [fn 2] The auditor should be prepared to justify departures from the SASs. Interpretive Publications.05Interpretive publications consist of auditing Interpretations of the SASs, appendixes to the SASs, fn 3 auditing guidance included in AICPA Audit and Accounting Guides, and AICPA auditing Statements of Position. fn 4 Interpretive publications are not auditing standards. Interpretive publications are recommendations on the application of the SASs in specific circumstances, including engagements for entities in specialized industries. An interpretive publication is issued under the authority of the ASB after all ASB members have been provided an opportunity to consider and comment on whether the proposed interpretive publication is consistent with the SASs. [As amended, effective September 2002, by Statement on Auditing Standards No. 98.] .06The auditor should be aware of and consider interpretive publications applicable to his or her audit. If the auditor does not apply the auditing guidance included in an applicable interpretive publication, the auditor should be prepared to explain how he or she complied with the SAS provisions addressed by such auditing guidance. Other Auditing Publications.07Other auditing publications include AICPA auditing publications not referred to above; auditing articles in the Journal of Accountancy and other professional journals; auditing articles in the AICPA CPA Letter; continuing professional education programs and other instruction materials, textbooks, guide books, audit programs, and checklists; and other auditing publications from state CPA societies, other organizations, and individuals. fn 5 Other auditing publications have no authoritative status; however, they may help the auditor understand and apply the SASs. .08If an auditor applies the auditing guidance included in an other auditing publication, he or she should be satisfied that, in his or her judgment, it is both relevant to the circumstances of the audit, and appropriate. In determining whether an other auditing publication is appropriate, the auditor may wish to consider the degree to which the publication is recognized as being helpful in understanding and applying the SASs and the degree to which the issuer or author is recognized as an authority in auditing matters. Other auditing publications published by the AICPA that have been reviewed by the AICPA Audit and Attest Standards staff are presumed to be appropriate. fn 6 Effective Date.09This section is effective for audits of financial statements for periods beginning on or after December 15, 2001. What is generally accepted Government Auditing Standards?What is GAGAS? Generally Accepted Government Auditing Standards (GAGAS), also known as the Yellow Book, are the guidelines for audits created by the Comptroller General and the audit agency of the United States Congress, the Government Accountability Office.
WHO issues generally accepted Government Auditing Standards?These standards are established by the Comptroller General of the United States in conjunction with the Government Accountability Office (GAO), and are found in its publication, Government Auditing Standards.
What is the general character of the three generally accepted auditing standards?What is the general character of the three generally accepted auditing standards classified as general standards? Criteria for competence, independence, and professional care of individuals performing the audit.
Which of the following best describes what is meant by the term generally accepted auditing standards?The correct answer is b. Pronouncements issued by the Auditing Standards Board. The Generally Accepted Auditing Standards are issued and maintained by the Auditing Standards Board. All AICPA members have the duty to remain updated on the Auditing Standards Board's pronouncements.
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