GAAS Flashcards
GAAS Standards
10 GAAS standards are no longer referred to by the Clarified Audit Standards
Materiality and Audit Risk are the foundations of GAAS
General Standards
(TIP)
- Training and Proficiency
- Independence
- Professional Care
Training and Proficiency
Education
Audit Experience
Independence
Fact and Appearance
Honest
No Direct Financial Interest
No Indirect Material Financial Interest
Professional Care
- Technical abilites mirror those held by peers in the profession
- Follow GAAS stds
- Reasonable Level of Assurance
- Reasonable Level fo Skepticism
- Supervise Audit Staff
- Review judgements at every level
Standards of Fieldwork
(PIE)
Planning and Supervision
Internal Control
Evidence
Planning and Supervision
Audit should be adequately-planned and the work of any supporting staff
should be supervised
Internal Control
Auditor must understand the entity and its internal control environment
Evidence
Auditor must obtain sufficient & appropriate audit evidence
Standards of Reporting
(CDOG)
Consistency
Disclosures
Opinion
GAAP
Consistency
Consistency is Implied.
Report only refers to consistency if accounting
principles have not been consistently applied period-to-period.
Disclosures
Adequacy is Implied.
Report only refers to disclosures if disclosures are
NOT adequate.
Opinion
Audit Opinion is based on Financial Statements as a whole
GAAP
Audit Report MUST state whether the financial statements have been
prepared in accordance with US GAAP
