Which of the following statements about Generally Accepted Audit Standards are true?
I.They serve as broad guidelines to auditors for conducting an audit engagement.
II.They are sufficiently specific to provide any meaningful guide to practitioners.
III.They represent a framework upon which the AICPA can provide interpretations..
A)I and II
B)I and III
C)II and III
D)I, II and III

Question

Quizplus · Accepted Answer

Statement I is true as Generally Accepted Audit Standards (GAAS) serve as broad guidelines to auditors for conducting an audit engagement. 
Statement II is false as GAAS are not sufficiently specific to provide any meaningful guide to practitioners, rather they provide a general framework. 
Statement III is true as GAAS represent a framework upon which the AICPA can provide interpretations to aid practitioners in applying the standards. Therefore, only statements I and III are true, making choice B the correct answer.

Which of the Following Statements About Generally Accepted Audit Standards