Chapter 2 - Review Checkpoints

Chapter 2 - Review Checkpoints - Dana Reaser Chapter 2...

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Dana Reaser Chapter 2 Review Checkpoints 2.4 Identify and briefly describe the three fundamental principles underlying GAAS. 1. Responsibilities Principle – this states that the auditor is responsible for being competent and capable of performing the audit. That they comply with all ethical requirements and maintain a professional skepticism and exercise professional judgement during all planning and performing of the audit. 2. Performance Principle – in order for the auditor to obtain a reasonable assurance about financial data, they must plan the work and supervise any assistants to the audit. They determine and apply the appropriate materiality level throughout the audit. They will identify and assess the risks of any material misstatement, whether due to fraud or error, based on the understanding of the company. If a material misstatement is found, the auditor will obtain sufficient evidence about whether they exist, by implementing an appropriate response to each of the assessed risks.
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  • Spring '17
  • Financial audit

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