AE7_Team%20Answer%20Changing%20the%20Auditors%20Reporting%20Model

AE7_Team%20Answer%20Changing%20the%20Auditors%20Reporting%20Model

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Changing the Auditors Reporting Model Team Answer Dong Whi Noh, Mark Doroba, Ashley Sanders, Stephen Choung 1 Team Answer Current reporting model Rationale for modification PCAOB Proposals & Cost and Benefits Essential questions Recommendation Agenda 2 Team Answer A BIG PICTURE: the audit process 3 Team Answer Traditionally GAAS (Generally Accepted Auditing Standards) Single report about financial statements SOX of 2002 included GAAS in rules of PCAOB for Integrated Audit Report about fin. statements Managements assertion about the effectiveness of internal control Auditors own assessment of the same controls Current audit reporting model 4 Team Answer General Standards (qualification/conduct) Fieldwork or Examination Standards Reporting Standards The auditor must: Express an opinion on the financial statement as a whole Indicates situations where GAAP isnt consistently applied Evaluate the adequacy of informative disclosures State whether statements were prepared in accordance with GAAP GAAS 5 Team Answer Auditing Standards AS No. 1 15 (adopted by PCAOB and approved by SEC) Interim Standards Consists of GAAS including: AU Sec. 508 Reports on Audited Financial Statements PCAOB Auditing Standards 6 Team Answer Explanatory paragraph not required unless (AU sec. 508): Substantial doubt about the company's ability to continue as a going concern Material change between periods in accounting principles or in method of their application Correction of a material misstatement in previously issued financial statements Rules at Issue 7 Team Answer Emphasis paragraph not required (AU sec. 508) entity had significant transactions with related parties there were unusually important subsequent events there were specific accounting matters affecting comparability of the financial statements. No required assurance on information outside the financial statements Materiality doesnt have to be quantified Rules at Issue 8 Team Answer Content of Auditors Report Auditor has significant insight additional info based on that insight is needed Specifically targeting Auditors for more info Why not management instead?...
View Full Document

Page1 / 29

AE7_Team%20Answer%20Changing%20the%20Auditors%20Reporting%20Model

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online