Question

The auditors’ responsibility for reporting violations of laws and regulations under Generally Accepted Government Auditing Standards differs from their responsibility under generally accepted auditing standards. Compare these responsibilities.

Answer 1

GAGAS means generally accepted government auditing standards are the guidelines for audit created by Comptroller General and the audit agency of United States Congress,the government accountability office.

It is also known as YELLOW BOOK

These are the guidelines used for government agencies and entities auditing.

On the other hand ,if we talk about GAAS generally accepted auditing standards. These standards provide guidelines for those entities where audit targeting are private and public businesses. It contains 3 types of standards- general standards, Standards of field work, Standards of reporting.

Auditing in general sense means INSPECT. It is process of audit the books of accounts of the businesses to maintain governance and protect the interset of the stakeholders. The person who perform the auditing process more efficiently is known as Auditor.

Auditor perform there work of audit with various responsibilities . The basic responsibility of an auditor to perform his duty without biasness and show a clear picture of business entity to all its stakeholders.

At the end of auditing process auditor should have to create a audit report with personal judgement.

Responsibility of auditors for reporting violations of laws and regulations under GAGAS are differ from reporting under GAAS.

In Standards of reporting under GAAS, it is the responsibility of auditors to mention each and every aspect in its report whether there is any voilation of law or not.

But when we talk about GAGAS , the professional duty to documentation where Copies of records and documents are maintained and Minutes of discussions held with management ,those charged with governance or parties outside the entity.

The auditors responsibility area is wide in GAGAS as compare to GAAS.