Auditing SAS Flashcards
AU 202, “Compliance With Standards”
Requires that auditors adhere to the standards promulgated by the Auditing Standards Board.
AU 220, “Quality Control for an Engagement Conducted in Accordance with (GAAS)”
The auditor’s objective is to implement quality control procedures at the engagement level that provide reasonable assurance that (a) the audit complies with professional standards and applicable legal and regulatory requirements and (b) the auditor issues an appropriate report.
AU 210, “Terms of Engagement”
The auditor’s objective is to accept an audit engagement involving a new or existing audit client only when the basis for the audit has been agreed upon by (1) establishing when the “preconditions for an audit” are present; and (2) confirming that a common understanding of the terms of the engagement exists between the auditor and management (and those charged with governance, as applicable).
AU 300, “Planning An Audit”
The auditor’s objective is to plan the audit so that it will be performed in an effective manner.
AU 320, “Materiality in Planning and Performing An Audit”
The auditor’s objective is to apply the concept of materiality appropriately in planning and performing the audit.
AU 520, “Analytical Procedures”
The auditor’s objectives are to: (1) obtain relevant and reliable audit evidence when using substantive analytical procedures; and (2) design and perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion about whether the financial statements are consistent with the auditor’s understanding of the entity.
AU 240, “Consideration of Fraud in a Financial Statement Audit”
The auditor’s objectives are to: (1) identify and assess the risks of material misstatement due to fraud; (2) obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and (3) respond appropriately to fraud or suspected fraud identified during the audit.
AU 250, “Consideration of Laws and Regulations in an Audit of Financial Statements”
The auditor’s objectives are to: (1) obtain sufficient appropriate audit evidence regarding material amounts and disclosures about laws and regulations generally recognized to have a direct effect on the financial statements; (2) perform specified audit procedures that may identify instances of noncompliance with other laws and regulations that may have a material effect on the financial statements; and (3) respond appropriately to noncompliance (or suspected noncompliance) with laws and regulations identified during the audit.
AU 620, “Using the Work of an Auditor’s Specialist”
The auditor’s objectives are to determine: (1) whether to use the work of an auditor’s specialist; and (2) whether the work of the auditor’s specialist is adequate for the auditor’s purposes.
AU 260, “The Auditor’s Communication With Those Charged With Governance”
The auditor’s objectives are to: (1) communicate clearly the auditor’s responsibilities related to the audit and an overview of the planned scope and timing of the audit and (2) obtain from those charged with governance information relevant to the audit.
AU 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement”
The auditor’s objective is to “identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and relevant assertion levels through understanding the entity and its environment, including its internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement.”
AU 330, “Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained”
The auditor’s objective is “to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement through designing and implementing appropriate responses to those risks.” (This standard will be introduced here, but discussed in more detail elsewhere in connection with “audit evidence.”)
AU 610, “Using the Work of Internal Auditors”
The external auditor may use the internal audit function to (1) obtain audit evidence that modifies the nature, timing, or extent of audit procedures to be performed by the external auditor; and/or (2) provide direct assistance to the external auditor under the external auditor’s direction, supervision, and review.
AU 500, “Audit Evidence”
This pronouncement states that the auditor’s objective is to “obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion.”
