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Business Definition for: auditing standards
Dictionary of Accounting Terms
auditing standards

guidelines that auditors follow when examining financial statements and other data. Auditing standards are promulgated by authoritative bodies, such as the american institute of certified public accountants (AICPA) , which issues Generally Accepted Auditing Standards (GAAS) . The Institute of Internal Auditors (IIA) also sets standards for internal auditors. Further, standards exist for auditors filing for companies with governmental regulatory bodies.

Dictionary of Business Terms
auditing standards

guidelines to which an auditor adheres.

See also Generally Accepted Accounting Principles (GAAP)
Related Terms:
Generally Accepted Accounting Principles (GAAP)

standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. GAAP derive, in order of importance, from: (1) issuances from an authoritative body designated by the AICPA Council (for example, the FASB Statements, AICPA APB Opinions, and AICPA Accounting Research Bulletins); (2) other AICPA issuances such as AICPA Industry Guides; (3) industry practice; and (4) accounting literature in the form of books and articles. Principles also derive from tradition, such as the concept of matching. In the audit report, the CPA must indicate that the client has followed GAAP on a consistent basis.

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 Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
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