Question

Compliance with generally accepted auditing standards is considered by the AICPA as ideal audit performance rather than an attainable level for most audits.

a. True
b. False

Answer 1

False. Compliance with generally accepted auditing standards (GAAS) is considered by the American Institute of Certified Public Accountants (AICPA) as a mandatory requirement for auditors conducting financial statement audits.

Step-by-step explanation:

False. Compliance with generally accepted auditing standards (GAAS) is considered by the American Institute of Certified Public Accountants (AICPA) as a mandatory requirement for auditors conducting financial statement audits. GAAS provide a framework for auditors to follow in order to obtain reasonable assurance about whether the financial statements are free from material misstatement.

The AICPA defines GAAS as a set of audit objectives, general standards, and field work standards that auditors must meet. These standards include planning and performing an audit with due professional care, obtaining sufficient appropriate audit evidence, and maintaining independence from the client.

While it may be challenging to achieve ideal audit performance in every audit, the goal of auditors is to strive for compliance with GAAS to ensure the reliability and credibility of financial information.