Financial statement Audits-professional standards

Question 1

SAS’s make up ___

when the AICPA says GAAS they are referring to SASs.

Answer 1

GAAS

auditors must adhere to the requirements of SAS’s, according to AICPA rule.

Question 2

interpretative publications

Answer 2

consist of the appendices to the sas, auditing interpretations of the sas, audit guidance, etc.
not considered to be auditing standards
these are important and should be considered because auditors need to explain how they complied with the SAS provisions

Question 3

other auditing publications

Answer 3

these have no authoritative status (journal articles, etc)

Question 4

the various AICPA standards distinguish between two types of professional requirements

Answer 4

unconditional requirements- must comply with the requirement without exception. (indicated my MUST)

presumptively mandatory requirements- compliance with such a requirement is expected, but rare exceptions are permitted(indicated by should). must document the justification for any exception

Question 5

matters that are not requirements

Answer 5

explanatory material -guidance (may, might, could)

interpretive publications-guidance that is outside of the standards