In 1947, the American Institute of Certified Public Accountants (AICPA) adopted GAAS to establish standards for audits. Which of the following categories of audit standards established by GAAS are…

The correct answer is C. General standards. In 1947, the American Institute of Certified Public Accountants (AICPA) adopted Generally Accepted Auditing Standards (GAAS) to establish standards for audits. The standards cover the following three categories: General Standards: They relate to professional and technical…

Audit Fundamentals & Planning

Question

In 1947, the American Institute of Certified Public Accountants (AICPA) adopted GAAS to establish standards for audits. Which of the following categories of audit standards established by GAAS are related to professional and technical competence, independence, and professional due care?

Options

AReporting standards
BRisk Analysis standards
CGeneral standards
DField work standards

How the community answered

(61 responses)

A
7% (4)
B
5% (3)
C
70% (43)
D
18% (11)

Explanation

In 1947, the American Institute of Certified Public Accountants (AICPA) adopted Generally Accepted Auditing Standards (GAAS) to establish standards for audits. The standards cover the following three categories: General Standards: They relate to professional and technical competence, independence, and professional due care. Field Work Standards: They relate to the planning of an audit, evaluation of internal control, and obtaining sufficient evidential matter upon which an opinion is based. Reporting Standards: They relate to the compliance of all auditing standards and adequacy of disclosure of opinion in the audit reports. If an opinion cannot be reached, the auditor is required to explicitly state their assertions. Answer: B is incorrect. There was no such category of standard established by GAAS.

Topics

#GAAS#AICPA#general standards#auditor competence

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