Professional Standards Flashcards
What standards must an auditor perform its audit under?
Generally Accepted Auditing Standards
What board establishes auditing and related professional practice standards to be used in the preparation and issuance of audit reports for issuers?
Public Company Accounting Oversight Board
What was the PCAOB established pursuant to?
Sarbanes Oxley Act of 2002
What does issuers consist of?
Entities subject to the rules of the SEC
Who must public accounting firms register with in order to audit public companies?
PCAOB
What standards and board are used for audits of nonissuers?
Statements on Auditing Standards and Auditing Standards Board
What standards are used for issuers?
PCAOB Auditing Standards
What are the overall objectives of the auditor?
To obtain reasonable assurance and to report on the financial statements
What are the general requirements related to the conduct of the audit?
Professional skepticism, ethical requirements, professional judgment, sufficient appropriate audit evidence and audit risk, and compliance with GAAS
What are the 3 reasons for fraud(fraud triangle)?
Pressure, opportunity, and rationalization
What are the ethical requirements of an auditor?
Independence in both fact and appearance
What are the 3 keys to audit procedures?
Nature, extent, and timing
What type of opinion is issued when the entity has weak internal control?
Adverse opinion
