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#Aicpa generally accepted auditing standards professional#

The auditor must either give an opinion on the entity's financial statements based on the audit or state that an audit cannot be expressed, giving reasons thereof.When the auditor is convinced that they have not received sufficient informative disclosures, they should disclose so in the audit report.The auditor must identify and report circumstances where the application of Generally Accepted Accounting Principles has not been consistently applied from one reporting period to the next.In their report, the auditor must state whether the company's financial statements comply with the Generally Accepted Accounting Principles.There are four reporting standards as follows Reporting standards define and provide a framework for how audit reports are presented.

The auditor must obtain adequate evidence through their audit to form an opinion on the company's books of accounts.They should assess the risks of misreporting the financial statements due to fraud or errors and design the requisite audit procedures to address the risks.

The auditor must have a good understanding of the company being audited and the environment in which that entity operates, including the internal controls.Proper planning of an audit is a requirement when doing an audit, and the auditor must supervise any audit assistants well.There are three standards of fieldwork as follows

#Aicpa generally accepted auditing standards professional#

The auditor has to exercise professional care when conducting the audit and when preparing the audit report.įieldwork standards define how audit fieldwork should be undertaken.

Auditors are required to have a mental attitude that will allow them to exercise independence during an audit.

An auditor is required to have sufficient training and experience to ensure the quality of an audit.

Audits should only be performed by a proficient person or group of persons.

General Standards typically address the overall conduct of the audit. There are ten GAAS which can be categorized into three main groups, they are: Types of Generally Accepted Auditing Standards (GAAS) Larry will review all the tech company's financial documents, looking for consistency and compliance with all laws, then present his findings to the US Securities and Exchange Commission (SEC). Larry has been hired to audit and report his findings on the tech company ABC.

Example of Generally Accepted Auditing Standards (GAAS) However, in preparing the auditing standards, the board borrowed heavily from the GAAS. Publicly traded companies are governed by auditing standards developed by the Public Company Accounting Oversight Board. In the United States, GAAS are used to audit companies not listed on stock exchanges (non-public companies). The AICPA amends the standards from time to time, in line with developments in accounting and auditing, and issues Statements on Auditing Standards (SAS) that supersede some of the standards issued previously. They were first approved for adoption by the membership of the AICPA in 1972.

The Generally Accepted Auditing Standards (GAAS) and codes were developed by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA). Generally Accepted Auditing Standards (GAAS) Details