aicpa generally accepted auditing standards

#AICPA GENERALLY ACCEPTED AUDITING STANDARDS PROFESSIONAL#

The same as for misstatements brought on by fraud or error, as indicated in section 200, the auditor is responsible for misstatements originating from noncompliance with laws and regulations having a direct impact on the determination of significant amounts and disclosures in the financial statements.Whether there are serious misstatements in the financial statements as a result of fraud or error, the auditor must receive reasonable confidence that they are found.The following pre-clarity Statements on Auditing Standards (SASs) are superseded and archived for reference purposes only. If management doesn't take the required measures, the auditors may want to end the engagement. As soon as the auditors become aware of any legal infractions, they should immediately inform the audit committee of the board of directors so that they can take the appropriate corrective action and make the required modifications to the financial statements. A generally recognised auditing standard-compliant audit is not intended to find client noncompliance with these other laws.Įven though an audit is not meant to provide reasonable assurance of doing so, the CPAs should be aware of the possibility that there has been noncompliance with other laws and investigate any instances that have been found. Numerous other rules and legislation, such those governing workplace safety and health, do not directly affect the sums shown in the financial statements. It is the obligation of the auditors to plan their audit in a way that gives them a reasonable certainty of finding significant infractions of these laws and regulations. The quantities and disclosures provided in the financial statements are directly impacted by certain laws and regulations, such as income tax rules.

The relationship between the law or regulation and the financial statements will determine the auditors' duties in terms of identifying clients who violate the law. The auditors should be on the lookout for the following throughout the audit: (1) audit evidence that conflicts with other audit evidence (2) information casting doubt on the veracity of documents and answers to questions (3) circumstances pointing to potential fraud and (4) circumstances indicating the need for additional audit procedures beyond those typically required.

#AICPA GENERALLY ACCEPTED AUDITING STANDARDS PROFESSIONAL#

Professional scepticism in the context of the audit of financial statements is keeping an open mind, being vigilant for circumstances that might point to a potential misstatement due to fraud or error, and critically evaluating audit evidence. Similar to this, there are other standards (SASs) that cover other auditing concerns. 1 describes the duties and responsibilities of the independent auditor.

Therefore, whenever the term 'generally accepted auditing standards' or 'GAAS' is used, it refers to the set of professional guidelines known as the Statements on Auditing Standards (SAS). CPAs must adhere to SASs while AICPA auditing standards are in effect. Similar to generally accepted accounting principles (GAAP), SASs make up GAAS. The Statements on Auditing Standards published by the Auditing Standards Board are the auditing standards that are generally acknowledged.

Aicpa generally accepted auditing standards