GAAS include 10 standardsA set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring the accuracy, consistency & verifiability of auditors' actions & reports. By relying on GAAS, auditors can minimize the probability of missing material information. GAAS are divided into 3 main sections: General Standards 1. The auditor must have adequate technical training & proficiency to perform the audit. 2. The auditor must maintain independence in mental attitude in all matters relating to the audit. 3. The auditor must exercise due professional care in the performance of the audit & the preparation of the report. Standards of Field Work 1. The auditor must adequately plan the work & must properly supervise any assistants. 2. The auditor must obtain a sufficient understanding of the entity & its environment, including its internal control, to assess the risk of material misstatement of the financial statements whether due to error or fraud, & to design the nature, timing, & extent of further audit procedures. 3. The auditor must obtain sufficient appropriate audit Evid by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit.
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