Sas 106 107 the two are in regards to what

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SAS 106 & 107: The two are in regards to what constitutes the audit evidence, materiality and risk while performing audit work. SAS 108: The deals with the planning process of the audit work. SAS 109 & 110: Understanding the environment of the entity to be audited is discussed in details in statement 109. 110 deals with performing audit procedures in response to the assessed risks. SAS 115: This deals with the internal control related matters. SAS 116 & 117 respectively: The two deal with the interim financial information and the compliance audits respectively. SAS 118, 119 & 120: The first two statements are based on the extra information such as any other information contained in the audited statements and any other supplementary information. 120 emphasizes the required supplementary information.
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AUDITING STANDARDS 6 Public Company Accounting Oversight Board (PCAOB) Auditing Standards. The Public Company Accounting Oversight Board which was created as a result of the Sarbanes-Oxley Act of 2002 is a private-sector non-governmental organization that oversees the audit of public companies. Its main aim is to protect the interests of the public and investors in the preparation of audit reports. All the rules and standard, however, must be approved by the U.S. Security and Exchange Rate. All in all, PCAOB has four main functions in regards to auditing which can be summarized as; Setting standards, registration, inspection, and enforcement. The auditing standards are as follows (PCAOB, 2017): 1. General Auditing Standards 1000 General Principles and Responsibilities: This principles consist of accounting standards 1001, 1005, 1010 and 1015. As the name suggests, they refer in general terms how the general auditing environment should be. AS 1001 talks about the responsibilities and functions of the auditor so as to reduce the risk of conflicts while performing audit duties. AS 1005, on the other hand, talks about the need for the auditor to be independent so as to make decisions without undue pressure from anyone in terms of financing, relationship-wise etc. AS 1010 talks about the training and proficiency of the auditor. This just touches on the qualifications that an auditor requires. For example, he/she should be a certified public accountant. AS 1015 touches on the auditor’s professional care while undertaking audit work. 1100 General concepts: The standards in this section deal with the main ideas and concepts behind Audit work. AS 1101 and 1105 talks about the concept of Audit Risk and audit evidence respectively while AS 1110 talks of the relationship of Auditing Standards to quality control standards.
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AUDITING STANDARDS 7 1200 General activities: This part talks about the activities that are involved in the audit process.They include AS 2001 which talks of the audit engagement, AS 1205 touching on the audit performed by other independent auditors, AS 1210 on the use of a specialist such as a lawyer, AS 1215 on audit documentation and AS 1220 which deals with the engagement quality review. 1300 Auditor Communications: They include AS 1301 on communications with Audit committees and AS 1305 on communications about control deficiencies in the audit of financial statements.
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  • Fall '19
  • Financial audit, auditing standards, SAS No.

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