Professional Documents
Culture Documents
Audit 1 Notes
Audit 1 Notes
The Audit adds credibility without bias or conflict of interest. Without an audit a company’s reports
would be meaningless.
GAAS –
A. General Standards - TIP
a. Training – properly trained
b. Independence – in-fact and in appearance
c. Professional Care
B. Standards of Fieldwork - PIE
a. Planning and Supervision –
b. Internal Control, Entity, and Environment – Get an understanding of the environment
and entity and controls.
i. Weak internal controls means more evidence is needed. You don’t have to give
an adverse opinion just need more evidence
c. Evidence
C. Standards of Reporting - ACDO
a. Accounting - Must state if the financial statements are in accordance withGAAP – Must
state (EXPLICIT)
b. Consistency – Identify in the auditor’s report – Silence is OK (Implicit)
c. Disclosure- Can state in the auditor’s report if disclosure is not adequate – Silence is OK
(Implicit)
d. Express opinion – Must state (Explicit)
i. We want to let the reader know what we are assuming responsibility for and
what we are not assuming responsibility for.
ii. Different in opinions are okay
iii. One statement opinions okay