Professional Standards Flashcards Preview

AUD > Professional Standards > Flashcards

Flashcards in Professional Standards Deck (13):
1

What standards must an auditor perform its audit under?

Generally Accepted Auditing Standards

2

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

3

What was the PCAOB established pursuant to?

Sarbanes Oxley Act of 2002

4

What does issuers consist of?

Entities subject to the rules of the SEC

5

Who must public accounting firms register with in order to audit public companies?

PCAOB

6

What standards and board are used for audits of nonissuers?

Statements on Auditing Standards and Auditing Standards Board

7

What standards are used for issuers?

PCAOB Auditing Standards

8

What are the overall objectives of the auditor?

To obtain reasonable assurance and to report on the financial statements

9

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

10

What are the 3 reasons for fraud(fraud triangle)?

Pressure, opportunity, and rationalization

11

What are the ethical requirements of an auditor?

Independence in both fact and appearance

12

What are the 3 keys to audit procedures?

Nature, extent, and timing

13

What type of opinion is issued when the entity has weak internal control?

Adverse opinion