[Anonymous]

Im having trouble understanding the difference between GAAS and SAS… can someone explain it to me?

[Anonymous]

SASs constitute GAAS and must be followed by auditors when AICPA auditing standards are applicable (rule 202). Under this rule, any reference to GAAS specifically means the body of professional standards (SASs) issued by ASB.

From PCAOB perspective, there are 10 standards that compromise traditional GAAS used to evaluate the quality of auditor's performance.

Remember, there's a difference between the old 10 standards first introduced by AICPA and subsequently adopted by PCAOB and the 7 principles that AICPA is currently utilizing. The 7 principles, however, were never adopted by PCAOB. Hence currently, AICPA = 7 principles and PCAOB = 10 standards.

If you want more info just ask Mr. Google about “Clarity and Convergence project”, Rule 202.

[Author]

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