Generally Accepted Auditing Standards (GAAS)

The video tutorial explains Generally Accepted Auditing Standards (GAS) and their role in auditing U.S. companies. It distinguishes GAS from Generally Accepted Accounting Principles (GAP) and outlines the standards and procedures auditors must follow. The tutorial covers the components of GAS, including PCAOB and ASB standards, and highlights the fundamental principles of responsibilities, performance, and reporting.

What is the role of GAAP in accounting?

• Guiding auditors in conducting audits

• Defining ethical guidelines for accountants

• Providing principles for recording and reporting transactions

• Setting standards for tax audits

What is the primary focus of GAAS?

• Setting tax regulations

• Providing standards for conducting audits

• Guiding accountants on recording transactions

• Defining financial reporting formats

Which of the following is NOT a component of GAAS?

• Statements on auditing standards

• Tax codes

• Interpretive publications

• PCAOB standards

Which organization issues the fundamental principles of GAAS?

• PCAOB

• SEC

• ASB

• FASB

What are the fundamental principles of GAAS?

• Integrity, objectivity, and independence

• Responsibilities, performance, and reporting

• Compliance, ethics, and governance

• Accuracy, transparency, and accountability