Flashcards in Government Auditing Deck (3)
Which of the following statements is a standard applicable to financial statement audits in accordance with Government Auditing Standards?
An auditor should report on the scope of the auditor's testing of internal controls.
Under Government Auditing Standards, reports for financial and compliance audits should include a report on the auditor's consideration of internal controls made as part of the financial and compliance audit. Therefore, under GAS, an auditor should report on the scope of the auditor's testing of internal controls.
The GAO standards list several threats to independence. The threat of self-review is defined as:
when an auditor will not appropriately evaluate the results of a previous judgment made or service performed by an auditor.