The Generally Accepted Auditing Standards (NAGAS) are the principles and requirements formally taken into account when performing audit tasks.
That is, within the scope of the audit, the NAGAS respond to the indications and principles that govern the behavior of all professional auditors.
When undertaking audit processes, there are a series of methodological lines to follow in order to meet objectives. Thus, these lines or parameters seek to ensure the data obtained, as well as to ensure consistency and formality in the work of the auditor.
Objective of the NAGAS
The creation and adaptation of this compendium of standards and practical instructions responds to a main mission: To facilitate the achievement of a technical audit opinion based on reality and formally descriptive.
In other words, the main idea was to avoid what are known as audit risks as much as possible.
Origin of the NAGAS
The original reference for this type of regulation in the field of auditing is in the United States in 1948.
In that year, the Audit Committee of the American Institute of Public Accountants of the United States of America (whose acronym responds to AICPA) promoted a series of documents with slogans and advice for the work of American auditors.
Over the decades and the convergence in terms of regulations and practices with other countries, these standards were successively expanded and extended to other countries in the world.
Main features of the NAGAS
Although it is true that the application of these regulations varies according to each territory, they mostly share the following characteristics:
- Territoriality: Each country defines and specifies its standards, adapting the general international lines to its own rules and regulations.
- Collegiate subject: The professional associations of each territory are in charge of shaping and putting these lines into practice.
- Officiality: Among its requirements, the NAGAS stipulate that the audit work must be carried out by authorized and duly trained professionals.
Classification of NAGAS standards
Depending on its nature, it is possible to distinguish between various types of audit regulations. Thus, we have:
- Of a personal or general nature: Referring to the execution of audit procedures aimed at the collection of information and data in organizations.
- Regarding the execution of the work: In this case, those practices related to the monitoring of company processes and strategies are contemplated.
- Conclusive. They refer to matters related to the development and presentation of the corresponding audit reports.