Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

What does GAAS stand for?

1. Generally Acknowledged Auditing Standards.

2. General Accounting Assurance Standards.

3. Generally Accepted Auditing Standards.

4. Guidelines for Auditing and Assurance Services.

The correct answer is: Generally Accepted Auditing Standards.

GAAS stands for Generally Accepted Auditing Standards. This term refers to a set of guidelines and criteria established to guide the auditing process. These standards ensure that audits are conducted in a consistent and reliable manner, which in turn enhances the credibility of the financial statements being audited. Generally Accepted Auditing Standards are essential for auditors in ensuring compliance with professional expectations and contribute to the overall quality of audits. The standards cover various aspects of the audit process, including the auditor's responsibilities, the nature of auditing evidence, and the reporting of audit findings. The correct answer reflects the widely recognized and authoritative set of standards that govern the auditing profession, whereas the other choices do not accurately capture the established terminology or the principles that underpin auditing practices.