Principles Underlying an audit conducted in accordance with generally accepted auditing standards
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Homework Help This preview shows page 1 - 2 out of 2 pages. Principles Underlying an Audit Conducted in Accordance with Generally Accepted Auditing Standards (GAAS)Purpose of an Audit and Premise upon which an Audit is Conducted1.The purpose of an audit is to provide financial statement users with an opinion by the auditoron whether the financial statements are presented fairly, in all material respects, inaccordance with the applicable financial reporting framework.An auditor’s opinionenhances the degree of confidence that intended users can place in the financial statements.2.An audit in accordance with generally accepted auditing standards in conducted on thepremise that management and, where appropriate, those charged with governance, haveresponsibilitya. For the preparation and fair presentation of the financial statements in accordance with theapplicable financial reporting framework; this includes the design, implantation, andmaintenance of internal control relevant to the preparation and fair presentation of financial Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 2 pages? Upload your study docs or become a Course Hero member to access this document Tags Financial audit, applicable financial reporting
Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards?Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards? An auditor’s opinion enhances the degree of confidence that intended users can place in the financial statements. Financial reporting framework. What is GAAS and why is it needed in the practice of auditing?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 the principles of an audit?The basic principles of auditing are confidentiality, integrity, objectivity, and independence, skills and competence, work performed by others, documentation, planning, audit evidence, accounting system and internal control, and audit reporting. What are the 7 principles of auditing?
What is the overall objective of audit documentation?ISA 230 states that the objectives of audit documentation are to provide: a sufficient and appropriate record of the basis for the auditor’s report evidence that the audit was planned and performed in accordance with ISAs, and applicable legal and regulatory requirements. Which GAAP principle is applicable?Principle of Regularity: GAAP-compliant accountants strictly adhere to established rules and regulations. Principle of Consistency: Consistent standards are applied throughout the financial reporting process. Principle of Sincerity: GAAP-compliant accountants are committed to accuracy and impartiality. Which assertion addresses whether all transactions?Assertions about completeness address whether all transactions and accounts that should be presented in the financial statements are so included. For example, management asserts that all purchases of goods and services are recorded and are included in the financial statements. Who has the primary responsibility for the performance of an audit?The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. What are the 3 types of GAAS?The 10 standards in the GAAS are grouped into three categories: general standards, standards of field work, and standards of reporting. These standards appear in Table 9.2. What are the three main sets of auditing standards?What are the three main sets of auditing standards used in professional practice by audit firms? International Standards on Auditing, AICPA Auditing Standards, and PCAOB Auditing Standards. What are the 10 components of GAAS?
What are the 4 phases of an audit process?Although every audit process is unique, the audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report and Follow-up Review. Client involvement is critical at each stage of the audit process. What is the most important part of an audit?As previously mentioned, an audit also includes auditors gaining an understanding of an entity’s internal control as it relates to financial statement reporting. This is arguably the most important part of an audit and where many organizations can find a significant amount of value from having an audit conducted. What are the steps of auditing?
What are the principles underlying the audit activity?The basic principles of auditing are confidentiality, integrity, objectivity, independence, skills and competence, work performed by others, documentation, planning, audit evidence, accounting system and internal control, and audit reporting.
Which of the following is a principle underlying an audit conducted in accordance?Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards? An auditor's opinion enhances the degree of confidence that intended users can place in the financial statements.
What are the generally accepted accounting principles?Generally Accepted Accounting Principles (GAAP or US GAAP) are a collection of commonly-followed accounting rules and standards for financial reporting.
What is meant by generally accepted auditing standards?Generally Accepted Auditing Standards (GAAS) are a set of principles and requirements that provide the basis for how an auditor prepares for, performs, and reports the results of audits.
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