Generally accepted auditing standards (GAAS) are a set of systematic guidelines used by auditors when conducting audits on companies’ financial records. GAAS helps to ensure the accuracy, consistency, and verifiability of auditors’ actions and reports.
What are auditing requirements?
Auditing is defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements. An audit can apply to an entire organization or might be specific to a function, process, or production step.
Which section of the Standards provides guidance for the retention of audit documentation for an issuer?
Section 802 of the Sarbanes
Section 802 of the Sarbanes-Oxley Act is intended to address the destruction or fabrication of evidence and the preservation of “financial and audit records.” We are directed under that section to promulgate rules related to the retention of records relevant to the audits and reviews of financial statements that …
What are the principles of audit independence?
We believe that the Commission’s four guiding principles of independence – (1) auditors should not have mutual or conflicting interests with their audit clients; (2) auditors should not audit their own audit work; (3) auditors should not function as client management or employees; and (4) auditors should not act as …
What do auditors need not retain in audit documentation?
.07The auditor need not retain in audit documentation superseded drafts of working papers or financial statements, notes that reflect incomplete or pre- liminary thinking, previous copies of documents corrected for typographical or other errors, and duplicates of documents.
What should 14the auditor document in an audit?
.14The auditor should document significant findings or issues, actions taken to address them (including any additional evidence obtained), and the basis for the final conclusions reached. Judging the significance of a finding or issue requires an objective analysis of the facts and circumstances.
Which is party ” owns ” audit work papers?
Briefly describe the key requirements included in the professional auditing standards regarding the preparation and retention of audit workpapers. Which party “owns” audit workpapers: the client or the audit firm? Workpapers is the connecting link between the client’s accounting records and auditor’s report.
What is the purpose of the AICPA Audit Documentation?
.01The purpose of this section is to establish standards and provide guid- ance on audit documentation. The exercise of professional judgment is integral in applying the provisions of this section. For example, professional judgment is used in determining the quantity, type, and content of audit documentation consistent with this section.
