These issues are the deficiencies that the auditor has found. (3) Others claim that there is no need to write an audit report. A verbal presentation to top management at the end of the audit process will suffice.
Step 2 According to Paragraphs 5-7 of PCAOB Auditing Standard No. 13, the auditor must make changes to the nature, timing, and extent of the audit work to address the risk of misstatement.
Audit standards on audit documentation (PCAOB Standard #3) indicate that the workpapers have to include enough details to understand the work performed, the source for all evidence, and the results and conclusions from that work.
(2)*** the exception to the fairness of presentation is so material that an "except for" opinion is not justified. (3) the auditor did not perform sufficient auditing procedures to form an opinion on the financial statements taken as a whole.
Describe the elements of the Generally Accepted Auditing Standards (GAAS).:Generally Accepted Auditing Standards (GAAS) is a a set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring the accuracy, consistency and verifiability of auditors' actions and reports. By relying on GAAS, auditors can minimize the probability of missing material information. GAAS are divided into the following three main sections:
, presenting specific documentation to provide a written record of the basis for the auditorââ?
The significance to the auditing profession is that only if an auditor is independent can he give a true and fair view of the financial statements. If the auditor is influenced the purpose of the audit will be lost.
The general fact that planning is important in the auditing profession should not be a shock to anyone. Auditing like many things is life require planning in order to be successful. The fact that planning involves process steps, research and documentation is really a standard type process that many of use in our daily life when planning an activity. So the question should be at this point what is different? Well first of all the main difference is that planning normally involves a short time frame in the case of auditing. That is you normally do not have months to prepare and secondly the process is not a research paper. With that said there are important aspects of auditing planning including: 1. Knowledge of the Industry 2. Knowledge of the company 3. Review of the accounting policies and practices. 4. Discussion with key management employees 5. Presentation to the Board of directors 6. Review of major controls, risk and opportunities. The point here is that the process is involved and extremely critical to the overall success of the audit.
- True on both points, and to extend each point a little: The audit period is a relatively short time frame. This is the main reason why auditors rely heavily on structure, and consistency.
180241 Audits Audits Audits AICPA professional standards provide uniform wording for the standard unqualified audit report. For each of the seven parts: 1-List the specific report parts.
(Auditing and Assurance Services, p. 37, 2006)" Why is it important that an auditor obtain "sufficient evidence"? What makes evidence competent or persuasive? The auditor must obtain sufficient evidence for several reasons.
Based on the audit documentation guidelines from the PCAOB, discuss whether or not you believe these guidelines are adequate to protect a certified public accountant from a lawsuit that may be filed by shareholders of a company. Discuss any additional documentation that you believe should be required to protect a company's shareholders from potential financial harm.
Basically, the PCAOB guidelines state that the CPAs and all auditors involved must compile and retain a comprehensive set of working papers, plus all additional documentation prepared by the CPAs throughout the audit, as needed.