Financial Statement Audits-Accounting VS Auditing

Question 1

Field work stage

Answer 1

systematically gathers evidence to evaluate assertions against criteria

Question 2

Reporting Stage

Answer 2

communicates the results

Question 3

three distinct standard setting bodies

Answer 3

FASB-for businesses (and others)
GASB-for state and local gov entities
FASAB-for federal gov entities
IASB-For entities adopting IFRS

Question 4

Accounting standard setting bodies applicable to auditing

Answer 4

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)

Question 5

Purpose of an audit

Answer 5

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.”