Financial Statement Audits-Accounting VS Auditing Flashcards
Field work stage
systematically gathers evidence to evaluate assertions against criteria
Reporting Stage
communicates the results
three distinct standard setting bodies
FASB-for businesses (and others)
GASB-for state and local gov entities
FASAB-for federal gov entities
IASB-For entities adopting IFRS
Accounting standard setting bodies applicable to auditing
ASB-for non issuers(private companies-GAAS)
PCAOB-for issuers (Public Companies)
GAO-For governmental entities
IFAC’s IAASB-issues international standards on auditing (ISAs)
Purpose of an audit
Purpose of an audit – “The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework. An auditor’s opinion enhances the degree of confidence that the intended users can place in the financial statements.”