Two Standards Of Auditing

“ In order to prevent fraudulent financial reports and statements, the American Institute of Certified Public Accountants(AICPA) has created ethical standards” (Ethical standards in a financial statement, 2011). These standards aim to make financial professionals accountable for their accounting practices. This includes the integrity of financial reporting and ensuring financial reporting is done fairly and factually. Financial accountants and professionals should maintain professional integrity, objectivity, and independence to reduce the risk of resulting legal action, loss of profits, and a poor reputation if improper financial reporting is done (Ethical standards in a financial statement, 2011).

The AICPA published the generally accepted auditing standards (GAAS). GAAS are those guidelines which auditors must follow while conducting an audit of a company's financial statements. It must also be stated in the audit report that the audit was conducted following GAAS.

9. Discuss the concept of electing § 179 expense. Does the election allow a larger expense deduction in the year of asset acquisition?

Contrary to some belief, accounting is not a “cakewalk” career. Accountants do not sit at a desk one-hundred percent of the time crunching numbers that always add up perfectly. In fact, accounting fraud is one of the largest scandals found today. When an accountant enters an engagement with a client, who are they liable to? Certainly not

GAAP stands for Generally Accepted Accounting Principles. This is a key component to know in any business. GAAP is based on established concepts, objectives, standards and conventions to guide how financial statements are prepared and presented. GAAP’s objective is to provide information that is useful to investors, lenders, or others that provide resources to a company or not-for-profit organization. GAAP includes principles on a few things. One is recognition. Recognition is defined as what items are to be listed on the financial statements. This includes assets, liabilities, revenues and expenses. The next is measurement. This refers to the amounts that need to be reports of each part of the financial statement. Another is presentation. This refers to what is displayed and listed on the statement and how they are organized. And lastly there is disclosure. This includes the specific information that is the most important to the people that utilize the financial

. Fraud occurs when someone acts with the intent to cause damage by misrepresentation. Negligence, however, is failing to act in a way that any reasonable person would in the same situation. Fraud and negligence are both considered torts because they are a civil wrong, which is when one does wrong to another person, and as a result you can sue for their actions. In Mona’s case she was clearly negligent for the audit reports and preparing the financial statements for Cardozo Corporation because she was not aware of the situation or the bank in this case and she did not have the intent to deceive. The verdict was decided in the Barclays Bank v. Grant Thornton case. In this case the auditors were accused for negligence in the production for the company, of non statutory audit reports given to third

As a CPA Eric must comply with the use Generally Accepted Accounting Principles (GAAP) as a guide in recording and reporting financial information, and to perform any service. When Eric carelessly overstated net sales and profits for the current year not only is not following these principles but he breached his duty of care. Eric will face civil liability under common law if the company has to incur any loss due to any kind of the carelessness of Eric.

GAAP is an international convention of good accounting practices. It is based on the following core principles. In certain instances particular types of accountants that deviate from these principles can be held liable.

Generally Accepted Accounting Principles are standards in accounting that are used in America to enable the recording and reporting of financial information in a uniform way. These standards are established by the Financial Accounting Standards Board with is the body that is responsible for developing and establishing these standards in the United States. Currently, the body is mandated with the task of setting up accounting standards for non-governmental organizations. While GAAP is mainly used as the accounting standards for financial recording and reporting, the source of this principle originates from various places because there is no single reference for them.

There is generally quite wide acceptance that convergence in accounting and auditing standards is desirable. In this essay, I am going to evaluate the challenge of convergence, why it is necessary and the benefit it brings back for an economy.

GAAP (Generally Accepted Accounting Principles) determine the content and format of financial statements. SEC (Securities and Exchange Commission) requires publicly traded companies to issue annual audit. Concerns are about adequacy of disclosure; and behavioral implications are secondary.

Generally accepted accounting principles (GAAP) are the standard structure of the guideline for financial accounting. GAAP contain balance sheet item sorting, share measurement and revenue recognition, organizations need to carefully scan their financial statement when they use GAAP. When accountants record and summarize financial statement, they need to apply these standards into their work. The Financial

Accountant Fraud is done in many ways but the most common way is falsifying statements to mislead people on the actual stability of a company.

Generally accepted accounting principles (GAAP) consist of various rules and principles which are used for

GAAPS are not natural laws of physics or other sciences but instead are identified in response to the needs of users and others affected by accounting. They are man-made rules that depend for their authority upon their general acceptance by the accounting profession. (Pyle & Larson,1981).