External auditors, in private practice, follow the auditing guidelines set forth within GAAS. GAAS stands for Generally Accepted Auditing Standards. They also must know, understand, and follow GAAP (Generally Accepted Accounting Principles) to ascertain managementís compliance.
External auditors in public practice (governmental) adhere to GAGAS (Generally Accepted Governmental Auditing Standards).
Financial accounting follows GAAP - Generally Accepted Accounting Principles. External auditors need to ascertain compliance with GAAP for management transactions. Compliance with Sarbanes-Oxley Act (SOX) must also be audited. This is defined through PCAOB, which reports to the SEC.
External auditing standards also must comply with legal regulations.
Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.
|Jennifer Mathes, Ph.D.|