How many basic auditing standards are included in GAAS?

Generally Accepted Auditing Standards (GAAS) include three primary categories of standards: general standards, fieldwork standards, and reporting standards. Within these categories, there are specific standards that auditors must follow to ensure quality and reliability in their audit processes.

The correct answer indicating ten basic auditing standards reflects the norms established by the American Institute of Certified Public Accountants (AICPA). These standards encompass the essential guidelines required to conduct audits effectively, ensuring that they adhere to professional competence, due care, independent judgment, and ethical considerations.

Each standard is designed to address different aspects of the auditing process, clarifying what is expected from auditors in terms of performance and conduct. Thus, understanding that GAAS includes ten standards provides a comprehensive framework that auditors use to assure the integrity and reliability of financial reporting.