ACT 4497 Lecture ch02

ACT 4497 Lecture ch02 - Assurance Services and the...

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Unformatted text preview: Assurance Services and the Integrity of th Modern Auditing: Modern Auditing: Financial Reporting, 8 Edition California Polytechnic State University at San Luis Obispo William C. Boynton Portland State University Raymond N. Johnson Chapter 2 – Auditors’ Responsibilities and Reports Chapter 2 Overview Chapter 2 Overview Relationship Between Accounting and Relationship Between Accounting and Auditing Important Fundamental Concepts Important Fundamental Concepts • Verifiability • Fair Presentation • Professional Judgment • Materiality Independent Auditor Relationships Independent Auditor Relationships • Management • Board of Directors and Audit Committee • Internal Auditors • Stockholders Generally Accepted Auditing Standards Generally Accepted Auditing Standards (GAAS) • General Standards • Standards of Field Work • Standards of Reporting GAAS – General Standards GAAS – General Standards • Adequate Technical Training and Proficiency • Independence in Mental Attitude • Due Professional Care GAAS – Standards of Field Work GAAS – Standards of Field Work • Adequate Planning and Proper Supervision • Understanding the Entity, Environment, and Internal Control • Sufficient Competent Audit Evidence GAAS – Standards of Reporting GAAS – Standards of Reporting • Financial Statements Presented in Accordance with GAAP • Consistency in the Application of GAAP • Adequacy of Informative Disclosures • Expression of Opinion Additional Standards Additional Standards • Statements on Auditing Standards – AICPA website : Audit and Attest Standards • PCAOB Auditing Standards – Public Companies Accounting Oversight Board web Assurance Provided by an Audit Assurance Provided by an Audit The Auditor’s Standard Report – The Auditor’s Standard Report – Unqualified Opinion • Title and Address • Introductory Paragraph • Scope Paragraph • Opinion Paragraph • Firm’s Signature and Date Departures from the Standard Report Departures from the Standard Report • Standard Report with Explanatory Language • Qualified Opinion • Adverse Opinion • Disclaimer of Opinion Types of Auditor’s Reports and Types of Auditor’s Reports and Circumstances Typical Report Profiles Typical Report Profiles The Auditor’s Standard Report on The Auditor’s Standard Report on Internal Controls • Title and Address • Introductory Paragraph • Scope Paragraph • Definition Paragraph The Auditor’s Standard Report on The Auditor’s Standard Report on Internal Controls (cont.) • Inherent Limitations Paragraph • Opinion Paragraph • Explanatory Paragraph • Firm’s Signature and Date Defining Criteria for Departures from Defining Criteria for Departures from the Standard Report Departures from the Standard Report on Departures from the Standard Report on Internal Controls ...
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This note was uploaded on 02/07/2011 for the course ACT 4497 taught by Professor Lewis during the Spring '11 term at Troy.

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