Lecture_2_web

Lecture_2_web - Practice Standards 2 standards and sources:...

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1 Practice Standards Practice Standards 2 standards and sources: Assurance standards CICA Handbook Generally accepted auditing standards (GAAS) CICA Assurance Standards Board Quality control standards Peer review Provincial institutes Standards Source
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2 General Standard General Standard “The examination should be performed and the report prepared by a person or persons having adequate technical training and proficiency in auditing, with due care and with an objective state of mind.” - CICA Handbook, section 5100.
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3 Generally Accepted Auditing Generally Accepted Auditing Standards Standards (GAAS) (GAAS) (HB 5100) (HB 5100) the foundation of all auditing theory and practice the basis of all Handbook recommendations issued by the CICA eight standards categorized into three groups: general, examination, and reporting (GAAS) (GAAS) (HB 5100) (HB 5100)
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4 Objectivity Objectivity Auditors are expected to be unbiased and impartial. This is achieved by maintaining independence. Independence in fact’ is the mental attitude, or state of mind of the auditor. Independence in appearance’ is covered by rules of professional conduct.
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5 Objectivity Objectivity An auditor must not subordinate his or her judgement to others and must preserve their independence in three aspects: 1. programming independence, 2. investigative independence, and 3. reporting independence.
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6 Due Professional Care Due Professional Care Due care is best understood in the context of the prudent auditor. Due care is a matter of what competent auditors do and how well they do it. Determination of due care must be reached on the basis of facts and circumstances in the case. Due care can become a legal issue.
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7 First Examination Standard First Examination Standard “The auditor should plan and perform the audit to reduce audit risk to an acceptably low level that is consistent with the objective of an audit. The auditor should plan the nature , timing & extent of direction and supervision of engagement team members and review of their work.” - CICA Handbook, section 5100 & 5150.
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8 Second Examination Standard Second Examination Standard “The auditor should obtain an understanding of the entity and its environment, including internal control , sufficient to identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, and sufficient to design and perform further audit procedures.” - CICA Handbook, section 5100
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Lecture_2_web - Practice Standards 2 standards and sources:...

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