1 / 22

Audit Standards

Audit Standards. Chapter 2. Use generally accepted auditing standards as a basis for further study. Learning Objective 5. General Standards. 1. The audit is to be performed by a person or persons having adequate technical training and proficiency as an auditor.

cleta
Download Presentation

Audit Standards

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Audit Standards Chapter 2

  2. Use generally accepted auditing standards as a basis for further study. Learning Objective 5

  3. General Standards 1. The audit is to be performed by a person or persons having adequate technical training and proficiency as an auditor. 2. The auditor must maintain independence in mental attitude in all matters relating to the audit.

  4. General Standards 3. The auditor must exercise due professional care in the performance of the audit and the preparation of the report.

  5. Standards of Field Work 1. The auditor must adequately plan the work and must properly supervise any assistants. 2. The auditor must obtain a sufficient understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement and to design further audit procedures.

  6. Standards of Field Work 3. The auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit.

  7. Standards of Reporting 1. The report shall state whether the financial statements are presented in accordance with generally accepted accounting principles. 2. The report shall identify those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period.

  8. Standards of Reporting 3. Informative disclosures in the financial statements are to be regarded as reasonably adequate unless otherwise stated in the report. 4. The report shall contain an expression of opinion regarding the financial statements, taken as a whole.

  9. Generally Accepted AuditingStandards General Standards 1. Adequate training and proficiency 2. Independence in mental attitude 3. Due professional care

  10. Generally Accepted AuditingStandards Standards of Field Work 1. Proper planning and supervision 2. Understanding of the entity 3. Sufficient appropriate evidence

  11. Generally Accepted AuditingStandards Standards of Reporting 1. Statements prepared in accordance with GAAP 2. Circumstances when GAAP not followed 3. Adequacy of disclosures 4. Expression of opinion on financial statements

  12. Relationship Between GAAS and PCAOB Auditing Standards The term generally accepted auditing standards is no longer used for public company audits. The term GAAS continues to be used for audits of private companies. Public company audits refer to PCAOB auditing standards.

  13. Statements on Auditing Standards The 10 generally accepted auditing standards are too general to provide meaningful guidance. SASs interpret the 10 generally accepted auditing standards and are the most authoritative references available to auditors.

  14. Statements on Auditing Standards • Classification of Statements on Auditing Standards • GAAS and Standards of Performance

  15. Discuss the role of international auditing standards. Learning Objective 6

  16. International Standardson Auditing International Standards on Auditing (ISAs) are issued by the International Auditing Practice Committee of the International Federation of Accountants (IFAC).

  17. International Standardson Auditing IFAC is the worldwide organization for the accountancy profession. The IFAC works to improve the uniformity of auditing practices and related services throughout the world.

  18. Identify quality control standards and practices within the accounting profession. Learning Objective 7

  19. Elements of Quality Control • Independence, integrity, and objectivity • Personnel management • Acceptance and continuation of clients • and engagements • Engagement performance • Monitoring

  20. Relationships Quality control standards Generally accepted auditing standards AICPA practice sections Peer review

  21. CPAs Encouraged to ConductThemselves at a High Level CPA examination GAAS and interpretations Continuing education requirements Quality control Conduct of CPA firm personnel Legal liability Peer review AICPA practice sections PCAOB and SEC Code of Professional Conduct

  22. End of Chapter 2

More Related