Importance Of The GAAS And Generally Accepted Accounting Standards
There are 2 different accounting boards the FASAB and GASB. The FASAB is the Federal Accounting Standards Advisory Board. “The mission of the FASAB is to promulgate federal accounting standards after considering the financial and budgetary information needs of citizens, congressional oversight groups, executive agencies, and the needs of other users of federal financial information” (FASAB 2011). The GASB is governmental accounting standards board. mission of the GASB is ”To establish and improve standards of state and local governmental accounting and financial reporting that will , result in useful information for users of financial reports, and guide and educate the public, including issuers, auditors, and users of those financial reports”(GSAB …show more content…
A qualified opinion report can be used only when the auditor concludes that the overall financial statements are fairly stated” (Arens A., Elder R. J., Beasley M. S. 2010) an unqualified opinion would be one that doesn’t follow the generally accepted accounting principles and the auditor is not independent of the company.
Ethics and auditing are an absolute necessity in order for an accurate audit. There are six core values that an auditor must have. They are trustworthiness, respect, fairness, caring, responsibility, and citizenship. An auditor must have some ethics in order to do their job correctly. If not, there is a chance they will allow unethical and improper items to be allowed. This causes situations like Enron where the company implodes.
Due to all the recent changes in the last ten years the auditing profession is in more demand than ever. The Sarbanes-Oxley Act has brought out a lot of extra work and requirements to accountants and auditors. The field is always growing and in