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Systematic rules are to be followed by the auditor when performing audits for ensuring the accuracy, consistency and verifiability of auditors’ actions and reports. These systematic rules are called as auditing standards. Using the standards auditors can reduce the chances of missing material information. General Accepted auditing standards (GAAS) are set of standards that are to be followed by an auditor to conduct an audit. These standards are framed by American Institute of Certified Public Accountants (AICPA).

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There are 10 standards under 3 sections defined in GAAS. The 3 sections are 1) General standards. • The auditor must be proficient to perform the audit and must be technically trained. • Auditor must maintain independence in mental attitude in every matter that is related to audit.. • Auditor must give extreme care in performing the audit and preparation of the report. 2) Standards of fieldwork. • Auditor should properly plan the work and monitor the assistants if any. • Audit must have proper understanding of the field he have to audit.

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• Auditor should obtain sufficient audit evidences. 3) Standards of reporting. • The auditor must mention whether the GAAS rules are properly followed. • The auditor must mention the circumstances under which GAAS rules are not met. • When the auditor determines the disclosed information is not adequate, the auditor must state it in the report. • The report can have either expressions of opinion regarding the financial statement, or an assertion to the effect that an opinion cannot be expressed

Generally accepted Government auditing standards (GAGAS) auditing standards described in Government Auditing Standards issued by the Comptroller General of the United States, also known as the Yellow Book. These standards are first issued in 1972 as standards for Audit of governmental organizations, programs and activities and functions. The GAGAS standards are intended for the use by auditors of government entities audit organizations to ensure high quality work with competence, integrity , objectivity and independence in performing and reporting on government audits.

They provides standards for audits of government organization, its programs and activities, monitors the governments the funds received by contractors, non-profit organizations and other organizations. These can be performed by any auditors at any level and are applicable to all types of internal and external audits Both the auditor and auditee are required to follow these standards when required by law, contract and policy agreement etc. These standards also describe the auditor’s professional qualification, quality of the audit and characteristics of audit report.

GASAS includes all the 10 standards of the GAAS under the 3 sections apart from the additional standards defined in those sections. Additional standards in GAGAS under each section are listed below… 1) General Standards Qualification Professional proficiency Knowledge of government programs (Continuing professional education)CPE requirements Due Care Quality control 2) Field Work Supplemental standards Planning or considerations of governments programs Compliance testing 3) Reporting Report distribution not restricted Report on compliance and internal control.

The standard Continuing professional Education (CPE) in GAGAS in addition to GAAS establishes that in environment of accelerating changes and increasing audit and attestation complexity, CPE is an integral part of the lifelong learning that is necessary for auditors to maintain their professional competence. 1994 version of CPE indicates that 80 hours of CPE is to be completed every 2 years. GAAS and GAGAS are related as shown in the picture below.


1) www. gao. gov/govaud/ybook. pdf 2) http://rjfreeman. ba. ttu. edu/acct5310/

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