1. Course Title: ACCT 4311: Auditing and Assurance Services Instructor: Dr Barbara L’Huillier Name: Yasmeen Al Jishi ID#: Chapter 2

2. What is the difference between GAAS and GAAP?
Generally Accepted Auditing Standards (GAAS):
GAAS are auditing standards that identify necessary qualifications and characteristics of auditors and guide the conduct of the audit examination.

3. The purpose of GAAS:
To meet the objectives of audit examination, which have been identified as:
To obtain reasonable assurance about whether the financial statments as a whole are free of material misstatement, whether due to fraud or error.
To report on the financial statements, and communicate as required by GAAS, in accordance with the auditor's findings.

4. Generally Accepted Accounting Principle (GAAP):
GAAP represent the requirements for the preparation and presentation of financial statement and accompanying footnote disclosures.

5. The purpose of GAAP:
To express an opinion as to whether the company's financial statements present its financial condition, results of operations, and cash flows in conformity with GAAP.

6. The difference between GAAS and GAAP summarized in the table:
Pronouncements issued by
Primary impact of pronouncements
Effect on audit examination
GAAP
Financial Accounting Standards Board and others
Preparation and presentation of financial statements and footnote disclosures
Auditors evaluate financial statement Preparation and presentation against GAAP
GAAS
PCAOB and AICPA and others
Conduct of the audit examination
Auditors must perform required procedures and follow specific guideline in audit examination

7. Any Questions?