General Accepted Accounting Standards

Business has made the economy prosper and in order for a business to continue, internal control is required in order for a business to properly and legally function in the business world.   Auditing is an integral part of the internal control of each business, organization, and companies.   The topic of this paper is to describe the nature and functions of auditing. Further information will include the General Accepted Auditing Standards (GAAS) and how GAAS affects Sarbanes Oxley Act of 2002 with applying the operational, functional, and the internal compliance of companies.   The Sarbanes Oxley Act (SOX) place auditors with additional requirements including the Public Company Accounting Oversight Board (PCAOB).  
Auditing is the examination of statement of accounts and of other documents connected with accounts by persons who have no part in the preparation.   Systems of financial inspection have been used especially in connection with public accounts.   Audit has certain categories of questions that shows actual assets and liabilities that are property recorded, evaluated, incurred, and valued.   Accuracy and the validity of the transaction and accounts are vital in auditing.   Auditing is also vital in ensuring that the standards applied and used in the accounting procedures of the company is with compliance with Generally Accepted Accounting Principles (GAAP).   Audits are vital for the owners, investors, executives , creditors, and trustees because accurate reporting is vital in making financial and executive decisions for an organization or company.   In some companies, an annual audit is required before investing.   (Auditing, 2008)  
CORT Business Services have internal control starting from the daily functions of accounting.   Procedures ensure that each transaction are being reviewed and accounted by a manager or supervisor at the end of the month.   Accounting department reviews and dissects the financials for any errors.   After the review, executives review the...