Performs the following services for CPAs: Sets professional requirements Conducts research Publishes materials related to services performed AICPA Empowered to set standards (guidelines) and rules
10/17/2016 6 AICPA Establishes Standards and Rules • The AICPA sets standards and rules that all members and other practicing CPAs must follow. 1.Auditing standards 2.Compilation and review standards 3.Other attestation standards 4.Code of Professional Conduct (Ethics) Other AICPA Functions Research and Grants The CPA examination Provides seminars and continuing education Publishes a variety of materials
10/17/2016 7 Learning Objective 5 Understand the role of international auditing standards and their relation to U.S. auditing standards The AICPA auditing standards board has undertaken a significant effort to make U.S. Generally Accepted Auditing Standards (GAAS) easier to read, understand and apply. International Standards on Auditing The International Federation of Accountants (IFAC) is the worldwide organization for the accountancy profession. The IFAC works to improve the uniformity of auditing practices and related services throughout the world.
10/17/2016 8 International Standards on Auditing • ISAs do not override a country's regulations governing the audit of financial or other information as each country’s own regulations generally govern audit practices. Learning Objective 6 Use U.S. auditing standards as a basis for further study 16
10/17/2016 9 GAAS • The broadest guidelines available to auditors in the U.S. are the 10 generally accepted auditing standards (GAAS), which were developed by the AICPA. • The 10 generally accepted auditing standards fall into three categories: • General standards • Standards of field work • Reporting standards 17 GAAS 18
10/17/2016 10 Generally Accepted Auditing Standards – United States General Standards 1. Adequate training and proficiency 2. Independence in mental attitude 3. Due professional care 19 Adequate Technical Training and Proficiency • Requires the auditor to have formal education in auditing and accounting , adequate practical experience for the work being performed, and continuing professional education. • In any case in which the CPA or the CPA’s assistants are not qualified to perform the work, a professional obligation exists to acquire the requisite knowledge and skills, suggest someone else who is qualified to perform the work, or decline the engagement.
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- Fall '16
- taher refaat
- Accounting, auditing standards