Which group developed generally accepted auditing standards (GAAS)?

The group that developed generally accepted auditing standards (GAAS) is the Auditing Standards Board (ASB). The ASB operates under the American Institute of Certified Public Accountants (AICPA) and is responsible for establishing standards for private sector audits. These standards provide a framework for the auditing process, ensuring that audits are conducted consistently and with a sufficient level of rigor and quality.

GAAS outlines essential principles such as the necessity of auditor independence, the importance of planning and supervision during the audit, and the requirement for sufficient appropriate evidence to support the auditor's opinion. The standards also help in maintaining the credibility of financial reporting, which is crucial for stakeholders relying on accurate financial information.

The other groups mentioned in the options focus on different areas. The Governmental Accounting Standards Board (GASB) deals with standards for state and local government entities. The Securities and Exchange Commission (SEC) is primarily concerned with regulating the securities industry and protecting investors. The Government Accountability Office (GAO) provides auditing services for the federal government and oversees public sector accountability but is not responsible for establishing GAAS. This context shows the distinct role that each entity plays, reinforcing the importance of the ASB in developing GAAS specifically.