3air_im02 - 11 CHAPTER 2 Assurance, Audit, and Quality...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 2 Assurance, Audit, and Quality Control Standards LEARNING OBJECTIVES Review Checkpoints Exercises and Problems Discussion Cases 1. Name the various practice standards for internal, governmental and independent auditors and identify their sources. 1, 2 2. Tell the reasons for having general assurance standards and give some examples of assurance subjects. 3, 4, 5, 6 45 3. Write and explain the 8 CICA generally accepted auditing standards (GAAS), and explain how GAAS was or was not followed in specific fact situations. 7, 8, 9, 10, 11, 12, 13 36, 37, 38 46 4. Describe the standard unqualified audit report in terms of its communication of audit standards and other messages. 14, 15, 16, 17, 18 39, 41, 42, 43 46 5. Interpret GAAS in the context of a computer environment. 19, 20 40 6. Explain some characteristics of "professional scepticism." 21 44 7. List and explain the important requirements of quality control standards for a PA firm. 22, 23, 24 47 Ashton Behavioral Case 44 POWERPOINT SLIDES PowerPoint slides are included on the website. Please take special note of: * Overview of Audit Process Generally Accepted Audit Standards EDP Audit Guidelines SOLUTIONS FOR REVIEW CHECKPOINTS 2.1 Practice Standards Who issues them 11
Background image of page 1

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

View Full DocumentRight Arrow Icon
12 Generally Accepted Auditing Standards CICA Auditing Standards Board Code of Professional Conduct CICA (Professional Ethics Division) Internal audit standards Institute of Internal Auditors Public Sector Audit Standards U.S. General Accounting Office 2.2 Practice Standards Who issues them Assurance/Attestation Standards CICA Auditing Standards Board Quality Control Standards Provincial Standards Practice Inspection Committees Standards and Practices for Certified Fraud Examiners National Association of Certified Fraud Examiners Management Advisory Services Standards AICPA Management Advisory Services Executive Committee CICA’s Guide For Developing Quality Control System’s in Public Accounting AICPA Federal Responsibilities in Tax Practice 2.3 The purpose served by the assurance standards is to guide attestation work in areas other than audits of financial statements. 2.4 The major differences between assurance standards and generally accepted auditing standards lie in the areas of practitioner competence, internal control, reporting, and suitability criteria. GAAS presume knowledge of accounting and require training and proficiency as an auditor (meaning an auditor of financial statements. The assurance standards are more general, requiring training and proficiency in the "assurance function" and knowledge of the "subject matter of the assertions." The assurance standards have no requirement regarding an understanding of the internal control structure for an information system. Considerations of internal control are implicit in the task of obtaining sufficient evidence. Anyway, some kinds of attested information may not have an underlying
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

3air_im02 - 11 CHAPTER 2 Assurance, Audit, and Quality...

This preview shows document pages 1 - 3. Sign up to view the full document.

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