Generally Accepted Auditing Standards
Okay kiddo, do you know what an auditor does?
No? Well, an auditor is like a grown-up detective who checks to make sure that a company's financial statements (which is like a grown-up report card for how well the company is doing with their money) are true and accurate.
Now, there are rules that auditors have to follow when they do their detective work. These rules are called Generally Accepted Auditing Standards or GAAS for short.
Think of GAAS like a set of guidelines that help the auditor make sure they are doing a good job. It's like a grown-up checklist that the auditors use to make sure they didn't forget anything important.
GAAS covers things like how the auditor should plan their work, how they should gather evidence to support their findings, and how they should communicate their results to other grown-ups who rely on the company's financial statements.
By following GAAS, the auditor is making sure that they are doing their detective work properly and giving everyone a more accurate picture of how the company is doing.
No? Well, an auditor is like a grown-up detective who checks to make sure that a company's financial statements (which is like a grown-up report card for how well the company is doing with their money) are true and accurate.
Now, there are rules that auditors have to follow when they do their detective work. These rules are called Generally Accepted Auditing Standards or GAAS for short.
Think of GAAS like a set of guidelines that help the auditor make sure they are doing a good job. It's like a grown-up checklist that the auditors use to make sure they didn't forget anything important.
GAAS covers things like how the auditor should plan their work, how they should gather evidence to support their findings, and how they should communicate their results to other grown-ups who rely on the company's financial statements.
By following GAAS, the auditor is making sure that they are doing their detective work properly and giving everyone a more accurate picture of how the company is doing.
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