GENERALLY ACCEPTED AUDITING STANDARDS (GAAS)

   The Generally Accepted Auditing Standards (GAAS) is the standard using in auditing in private company. Generally Accepted Auditing Standards have three categories is general standard, standard of fieldwork and standard of reporting. 

    Generally Accepted Auditing Standard(GAAS) are the minimum standard you use for auditing private companies In Additionally Auditing standards are not same with auditing procedure. Auditing standard are performed with the quality of the work assume to the objective to use to procedures.

   Firstly, we are talking General Standards: The three Generally Accepted Auditing Standard that address your Generally Accepted Auditing Standards qualification to be an auditor and the minimum standards for your work product. In auditing, the examination must be performed and the report must be prepared by an auditor who having adequate technical training and proficiency. The auditor must exercise due professional care and with an objective state of mind in the performance of the audit and preparation of the report. The auditor must maintain independence in mental attitude in all matters relating to the audit.

   Moreover, Standard of Field Works: The auditor must be performed adequately planned the work and the report prepared executed, all assistants are properly supervised. Besides that, the auditor must gain an understanding of the client and its environment, including internal controls, to assess the risk of material misstatement in the financial statements whether error or fraud, with the degree of reliance placed or determining the nature extent and the timing of further audit procedures.

    Furthermore, Standards of reporting the last four GAAS concern information you must consider prior to issuing your audit report. As an auditor must state in the report whether the financial statements are presented in accordance with Generally Accepted Accounting Principles (GAAP). The important is the report should contain with the expression of opinion on the financial statement or this principles have not been consistently observed. In this cases, the reason therefor should be stated.  Other that then, Auditor have to make sure that informative disclosures are not reasonably adequate with any additional information and auditor need to explain the number on the financial statement are provided.