It also provides a description of the internal control evaluations that take place to ensure the accuracy of the information being audited and the reports that are drafted to summarize the audit findings.
Investors depend on corporate financial statements, lenders depend on consumer applications and the government relies upon tax returns filed by individuals and businesses.
In financial audits, the client and the auditee are usually the same. The audit functions are conducted on an annual basis after their year-end close in March.
A sufficient understanding of the entity and its environment, including its internal control, should be obtained to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing and extent of further audit procedures.
Planning Before accepting any engagement, auditors must first consider the financial strength and credit rating of a prospective client in order to assess the overall risk of association with that business entity. If an audit client goes bankrupt or faces further financial turmoil, the auditors can be sued directly or named as defendants in lengthy and costly lawsuits.
The auditors then compile a report of their findings to be submitted to the appropriate parties. GAAS has three elements that must be used during every audit.
Unlock This Study Guide Now Start your hour free trial to unlock this page Auditing study guide and get instant access to the following: In addition, this article explains the process that auditors undertake as they plan and perform their audit and then prepare the audit report.
Having external and independent auditing agency helps ensure unbiased opinions for ABC, Inc.
The main points of this standard are 1. The Senior Accountant and the VP of Finance gather all the information pertaining to the audit and submits to the external auditors. Once independent auditors have reviewed the financial information provided by a client, the auditors prepare a report that expresses an opinion as to whether the financial information provided by the client has been compiled and presented in accordance with generally accepted accounting principles.
Finally, examples of the various forms of auditing, including internal financial auditing, government financial auditing and operational auditing, are included to help illustrate the roles that auditing plays in various industries and in differing aspects of the business model.
Other auditors may accept riskier engagements but implement greater controls over the scope and level of scrutiny in the document review process. These processes are critical to the accurate verification and assurance provided by the auditing professional.
Sufficient competent audit evidence should be obtained through audit procedures performed to afford a reasonable basis for an opinion regarding the financial statements under audit. To know the general audit objectives for classes of transactions and accounts.AUDITING Generally Accepted Auditing Standards Generally Accepted Auditing Standards Introduction Audit is a basically an examination and a review of the financial statement that have been prepared by the management at the end of the financial period.
Generally Accepted Auditing Standards Paper Prepare a ,word paper in which you explain the nature and functions of auditing. Relate your explanation to the audit functions in your organization, or an organization with which you are familiar.
Generally Accepted Auditing Standards Paper Suretta Smith ACC/ Generally Accepted Auditing Standards Paper September 25, Instructor: Santos Alarcon, Jr. Abstract The purpose of this paper will be to describe the nature and functions of auditing. APA Research Paper Generally Accepted Auditing Standards General Standards (1) The audit should have been performed by a person or persons having satisfactory technical training as.
Generally Accepted Auditing Standard • Describe how these standards apply to financial, operational, and compliance audits. • Explain the effect that the Sarbanes-Oxley Act ofand the Public Company Accounting Oversight Board (PCAOB), will have on audits of publicly traded companies.
Auditing Research Paper January 9, Auditing in general is an organized process of accurately finding and assessing statements regarding financial records to determine the degree of accuracy between those statements and established criteria and communicate the results to .Download