![]() 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports (SAS No. 141 delays the effective date to December 15, 2021, and the Auditing Standards Board recommends that SAS Nos. 138, Amendments to the Description of the Concept of Materiality (SAS No. 139, Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes From SAS No. 140, Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes From SAS Nos. 141, Amendment to the Effective Dates of SAS Nos. 143, Auditing Accounting Estimates and Related Disclosures 144, Amendments to AU-C Sections 501, 540, and 620 Related to the Use of Specialists and the Use of Pricing Information Obtained From External Information Sources 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement He/she must also check if the financial statements are written as per the GAAP rules or not.SAS No. The auditor must also be sure to keep a constant check on the quality control in terms of the way the auditing is taking place and the audit report is being prepared. When it comes to any professional task that requires the person―in this case, the auditor―to follow certain standards in order to investigate the loopholes, it is always important to work with due care and diligence. The AICPA offers many courses for the certified public accountants to help them enhance their auditing skills. Continuing Professional Education (CPE)ĬPE is the medium through which the members of a professional group help the professionals of an organization improve and brush up their skills and qualities. This helps to complete the entire process in a more systematic and efficient manner. The auditor must carry out a well planned and effective supervision of the assistants, as well as the entire auditing process. Very similar to the GAAS, this criterion states that the auditor must obtain organizational independence from its management, as this would help him/her evaluate the activities of all organization’s personnel in an uninterrupted and unrestricted manner, also including the management. These are listed as follows – Independence The GAGAS are also known as the Yellow Book and were established by the Government Accountability Office (GAO). The 5 GAGAS are followed by the auditor when auditing the financial and/or performance audits of the government agencies. Generally Accepted Government Auditing Standards (GAGAS) It is also important for the auditor to comment upon the nature of the organization’s auditor in terms of work efficiency and responsibleness. In failing to do so, he/she must mention a valid reason. Also, the auditor must mention his overall opinion regarding the financial statements of the entity.If they are not sufficient, then that should be stated in the report. The auditor must present adequate informative disclosures in his/her report. ![]() If it is found that the generally accepted accounting principles have not been followed consistently during the current period in relation with the preceding period, then the auditor must mention those circumstances in his/her report.Once the field work has been done, it is mandatory for the auditor to state in his/her report whether or not the financial statements presented, follow the Generally Accepted Accounting Principles (GAAP).Obtaining audit evidences while performing the procedure also helps the auditor to base his/her opinion about the financial statements that have been, or are being audited.This also helps the auditor to further design the audit procedure, keeping in mind the nature and the time that would be needed. It is also important for the auditor to understand the entity and its environment thoroughly, in order to assess the possibility of fraud or error, when it comes to material misstatement. ![]()
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