The System Used For Reporting Under Gaas Within The United States

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The way in which audit reports have been documented and presented has slightly changed since the 1940’s whereby the use of guidelines as provided by GAAS (Generally Accepted Auditing Standards) in the documentation and reporting of the report is still in use. The system used for reporting under GAAS within the United States is the pass/ fail model which analysts believe to be a very useful tool for concise and clear assessment of a fair reporting of the audited financial statements of a company. The new set of rules by the PCAOB sets out to seek the presentation of additional information regarding the process of audit pertaining to each business by rolling out new audit standards. The new standards that require that a personal signature of the engagement partner be added to the final audit reports and the second rule requiring the disclosure of Critical Audit Matters (CAMs) together with other information that explicitly relate to each audit process. The effect of these two rules by the PCAOB will in effect mean that the scope towards transparency is widened and that the users of the audited information would easily rely on the information presented by the companies without any lingering questions as to the authenticity of the reports. Audit reporting and documentation provided by the previous standards required the auditor to communicate that the audit process could only offer a reasonable assurance to the users of the conformity with the Generally Accepted Auditing

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