________ specify the methods and procedures that are to be used by public accountants when conducting external audits of company financial statements
A) Generally accepted accounting principles
B) Generally accepted auditing standards
C) Auditor's expert opinions
D) General engagements and agreements

Question

Quizplus · Accepted Answer

Generally accepted auditing standards (GAAS) specify the methods and procedures that public accountants must follow when conducting external audits of company financial statements. GAAS cover areas such as audit planning, risk assessment, gathering and evaluating evidence, and reporting on the findings. Therefore, GAAS are necessary to maintain the quality and consistency of external audits. A is incorrect as Generally accepted accounting principles (GAAP) are related to the financial reporting of companies. C is incorrect as auditor's expert opinions are not a set of rules or procedures for conducting an audit. D is incorrect as general engagements and agreements may include details about the scope of the audit but they do not specify the actual methods and procedures that are to be followed.

________ Specify the Methods and Procedures That Are to Be