Chapter 2

The Auditing Profession

 

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 Understand the role of international audit-
ing standards and their relation to U.S.
auditing standards
Use U.S. auditing standards as a basis for
further study.
Identify quality control standards and
practices within the accounting profes-
sion

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 1
Understand the role of international auditing
standards and their relation to U.S. auditing
standards

2-3
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 IFAC is the worldwide organization
for the accountancy profession.

The IAASB works to improve the

uniformity of auditing practices and
related services throughout the world.

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2-5
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 Use U.S. auditing standards as a basis for
further study

2-6
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2-7
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 General Standards

1. Adequate training and proficiency

2. Independence in mental attitude

3. Due professional care

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 Standards of Field Work

1. Proper planning and supervision

2. Understanding of the entity

3. Sufficient appropriate evidence

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 Standards of Reporting

1. Statements prepared in accordance with GAAP/IFRS

2. Circumstances when GAAP/IFRS not followed

3. Adequacy of disclosures

4. Expression of opinion on financial statements

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 PCAOB ASB

Public Private
company company
audits audits

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The 10 generally accepted auditing standards
are too general to provide meaningful guidance.

SAS interpret the 10 generally accepted

auditing standards and are the most
authoritative references available to auditors.

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Identify quality control standards and practices
within the accounting profession.

2-13
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  Leadership responsibilities for quality
 Relevant ethical requirements
 Acceptance and continuation of clients
and engagements
 Human resources
 Engagement performance
 Monitoring

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2-15
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 Auditing Continuing
standards education
CPA
requirements
examination

Quality Conduct of Legal

control liability
CPA firm
personnel
Peer AICPA practice
review and quality
centers
Code of
PCAOB Professional
and SEC Conduct
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