Question

In 5-7 sentences, describe how professional auditing standards are formed and how they continue to evolve.

Answer 1

Solution:

Auditing standards are also known as Generally Accepted Auditing Standards (GAAS). There are set of standards to evaluate the audit. Generally Accepted Auditing Standards are promoted and evolved by Auditing Standard Board. Auditing Standard board is a division that comprises of American Institute of Certified Public Accountant (CPA). The auditing standards are formed considering 3 aspect. The first aspect relates to general auditing standards, second aspect relates to field work standard, and the third aspect relates reporting standard. These auditing standards are formed in accordance with the accounting standards. These standards are formed to scrutinize the auditing, attestation, and quality control statements issued by the auditor and to give guidance to Certified Public Accountant in the audit of non-public company. In 1978 auditing standards are formed by a board of 19 member represented from various industries, sectors and public accountant. The board issued guidelines, statements, interpretations that needs to be followed by all CPA while performing audits and attestation.