Generally Accepted Auditing Standards (GAAS) are Standards against which the quality of audits are performed and judged.  In the U.S., Standards are promulgated by the Auditing Standards Board (ASB), a division of the American Institute of Certified Public Accountants (AICPA).  Since the passage of the Sarbanes-Oxley Act of 2002 (SOX), the Public Company Accounting Oversight Board (PCAOB) has developed standards for publicly traded companies.  Sections 103(a)(2)(A) and 404(b) of the SOX Act directed the Board to establish Professional standards governing the independent auditor's attestation and reporting on management's assessment of the effectiveness of Internal Control Over Financial Reporting (ICFR).

Auditing Standard 2 (AS2) was the initial standard released to provide public accounting firms guidance regarding the requirements to comply with Sarbanes-Oxley. Due to the many difficulties faced by firms and issuers in the early years of compliance, the PCAOB released Auditing Standard 5 (AS5) in 2007 which superseded AS2.  AS5 was designed to provide clearer guidance and eliminate some of the questions that had plagued firms and companies through the initial years of attestation.  AS5 is the auditing standard currently used when complying with SOX.  However, it is important to have an understanding of AS2, it’s expectations and challenges be able to appropriately scope and understand the transition to AS5.  This course will provide an outline of both legislations and highlight the challenges and applications of the standards.  It is important for professionals to have a strong understanding of the concepts outlined in both auditing standards and the impetus for change that resulted in AS5.  This course is designed to provide a strong understanding of these concepts.