Generally Accepted Auditing Standards (GAAS)and Statements on Auditing Standards (SAS)should be looked upon by practitioners as:
A)ideals to work towards, but which are not achievable.
B)maximum standards that denote excellent work.
C)minimum standards of performance that must be achieved on each audit engagement.
D)benchmarks to be used on all audits, reviews, and compilations.

Question

Quizplus · Accepted Answer

Generally Accepted Auditing Standards (GAAS) and Statements on Auditing Standards (SAS) establish minimum standards of performance that must be achieved on each audit engagement. These standards are mandatory, and practitioners are required to comply with them in carrying out an audit. Choosing option A would imply that the standards are not achievable, which is incorrect. Option B suggests that they are maximum standards, but in reality, they are just the minimum required standards. Lastly, option D is incorrect as the benchmarks may vary depending on the nature and scope of the engagement.