Which of the following represents a type of auditing standard?

The correct choice, GAAS, refers to Generally Accepted Auditing Standards. These standards are essential as they establish the guidelines for conducting an audit of financial statements. GAAS provides a framework that auditors must follow to ensure that their audits are performed consistently and competently. This includes principles and standards that address the auditor’s responsibilities in areas such as planning the audit, understanding the client’s business, and obtaining sufficient evidence to support their conclusions.

In contrast, while GAAP (Generally Accepted Accounting Principles) is vital, it pertains specifically to the accounting principles and standards used in the preparation of financial statements rather than the process of auditing itself.

FASB (Financial Accounting Standards Board) is primarily responsible for establishing accounting standards and does not set auditing standards. Similarly, the IASB (International Accounting Standards Board) focuses on developing and promoting International Financial Reporting Standards (IFRS), which are also related to accounting, not auditing standards.

Understanding GAAS is fundamental for anyone involved in auditing, as it ensures adherence to quality, professionalism, and integrity in the audit process.