GAAS Flashcards
(15 cards)
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
