tailieunhanh - Lecture Principles of auditing and other assurance services (15/e): Chapter 2 - Whittington, Pany

Chapter 2 - Professional standards. After studying this chapter, you should be able to: Describe the 10 generally accepted auditing standards; identify the authoritative status of the Statements on Auditing Standards; discuss the auditors' responsibility for detecting errors, fraud, and illegal acts; explain the key elements of the auditors' standard report;. | Professional Standards Chapter 2 1 Public Company Accounting Oversight Board Auditing, Attestation, Quality Control, Independence, Ethical Standards for audits of public companies American Institute of Certified Public Accountants Auditing, Attestation, Quality Control, Independence Ethical, Accounting and Review Standards for engagements involving nonpublic companies State Boards of Accountancy License CPAs and CPA firms to practice in jurisdictions Authority of Organizations 2- Generally Accepted Auditing Standards--General Standards Adequate technical training and proficiency Independence in mental attitude is to be maintained Due professional care is to be exercised 2- 2 2 Generally Accepted Auditing Standards--Standards of Field Work Work is to be adequately planned and properly supervised Sufficient understanding of internal control is to be obtained Sufficient competent evidential matter is to be obtained to afford a reasonable basis for the opinion 2- 3 3 Generally | Professional Standards Chapter 2 1 Public Company Accounting Oversight Board Auditing, Attestation, Quality Control, Independence, Ethical Standards for audits of public companies American Institute of Certified Public Accountants Auditing, Attestation, Quality Control, Independence Ethical, Accounting and Review Standards for engagements involving nonpublic companies State Boards of Accountancy License CPAs and CPA firms to practice in jurisdictions Authority of Organizations 2- Generally Accepted Auditing Standards--General Standards Adequate technical training and proficiency Independence in mental attitude is to be maintained Due professional care is to be exercised 2- 2 2 Generally Accepted Auditing Standards--Standards of Field Work Work is to be adequately planned and properly supervised Sufficient understanding of internal control is to be obtained Sufficient competent evidential matter is to be obtained to afford a reasonable basis for the opinion 2- 3 3 Generally Accepted Auditing Standards--Standards of Reporting State whether the financial statements are presented in accordance with GAAP Identify circumstances in which such principles have not been consistently applied Informative disclosures are adequate unless otherwise stated in the report Report should clearly state the degree of responsibility being assumed by the auditors by expressing an opinion or stating that one cannot be expressed, and the reason therefor 2- 4 4 The GAAS Hierarchy 2- Auditor Responsibility for the Detection of Errors and Fraud Obtain information to assess the inherent risks and fraud risks Information about the company and its environment Discussion among audit team members Inquiries of management and others Planning analytical procedures, including those involving revenue Assess the risk of errors and fraud that may cause the financial statements to contain a material misstatement. Based on that assessment, plan and perform the audit to obtain reasonable