GAAS and Principles

Question 1

General Standards-These are “personal” in nature as they relate to qualities that the auditor brings to the assignment

Answer 1

Training-Adequate technical training and proficiency
Independence-Independence in mental attitude
Due Care- Carefully and with prudence in conducting the performance of the audit and the preparation of the report

Question 2

Field Work Standards-There are 3 of these. They are related to the evidence gathering activities that form the foundation for the auditor’s conclusions.

Answer 2

Planning and Supervision-Adequately plan the work and must properly supervise any assistants
Internal Control-Sufficient understanding of the entity and environment, including IC, to assess the risk of material misstatement of the FS due to fraud or error and to
Evidence-Sufficient appropriate evidence…to afford a reasonable basis for an opinion

Question 3

Reporting Standards- 4 Each says something about the language required in the auditor’s report

Answer 3

GAAP-“Presented in accordance with Generally Accepted Principles”
Consistency-Identify circumstances in which such principles have not been consistently observed
Disclose-If informative disclosures are not reasonable adequate, the auditor must so state in the auditor’s report
Opinion- “Opinion regarding FS, taken as whole, or state that an opinion cannot be expressed, in the auditor’s report.”