GENERALLY ACCEPTED AUDITING STANDARDS

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GENERALLY ACCEPTED AUDITING STANDARDS

• Profesor Juan M. García Merced

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General Standards

• Adequate training and proficiency
• Independence
• Due professional care

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Field Work Standards

• Adequate planning and supervision
• Understand the clients internal control
• Sufficient competent evidence

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Reporting Standards

• Indicate whether the financial statements are
  prepared based on generally accepted accounting
  principles
• Identify deviations regarding consistency
• Report instances of inadequate disclosures
• Issue an opinion

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STATEMENTS ON AUDITING STANDARDS (SAS)

• Specific guidance on auditing standards
• Interpret the Generally Accepted Auditing
  Standards
• Most authoritative references
• Minimum standards of performance rather than
  maximum standards or ideals

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QUALITY CONTROL SYSTEM

• Methods used to ensure that the firm meets its
  professional responsibilities to clients and
  others.
• Are established for the firm depending on such
  things as the size, of offices, type of
  clients, services.

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QUALITY CONTROL SYSTEM ELEMENTS

• Independence, integrity, and objectivity
• Personnel management
• Personnel qualified
• Work assigned to who have adequate training
• Personnel should participate in professional
  education
• Personnel selected for advancement have the
  qualifications

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QUALITY CONTROL SYSTEM ELEMENTS

• 3. Acceptance and continuance of clients
• 4. Engagement performance standards
• 5. Monitoring test compliance

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PEER REVIEWS

• Review, by CPAs, of a firms compliance with its
  quality control system.
• Members of the AICPA are required to have a peer
  review every three (3) years
• Others - voluntary

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Public Company Accounting Oversight Board

• Established in 2002
• Functions
• Register public accounting firms of reporting
  companies
• Establish or adopt auditing, quality control,
  ethics, independence, and other standards
• Conduct inspections of registered public
  accounting firms
• Perform other duties to promote standards