Professional standards

Question 1

AICPAs use of GAAS

1. SASs (Statement on Aud Stnds)
   sufficient knowledge of SAS, justify departure from SAS, materiality and audi risk.

Answer 1

2. INTERPRETIVE PUBLICATIONS (IP)

• not equivalent of auditing standards, so they have no authority
• interpretations and appendices to SASs, AICPA auditing n actng guides and Stmnts of position
• issued by ASB
• auditors should consider IP applicable to audits; when not complied with, explanations required

Question 2

3. OTHER AUDITING PUBLICATIONS

• includes articles in jounal of accountancy and AICPAs CPA letter, textbooks etc
• no authoritative status
• useful to auditor in applying SASs
• assess appropriateness of other publications (whether helpful in applying SASs and about author)

Answer 2

PROFESSIONAL REQUIREMENTS

1. UNCONDITIONAL- standard MUST comply without exception
2. PRESUMPTIVELY MANDATORY - If departure from requiremnts and must justify departure and alternate procedures performed - SHOULD