Ima Sleppin, the administrative assistant of a local CPA firm, merged the files listing GAAS standards and GAGAS standards. Because the firm performs both GAAS and GAGAS audits, it is important to identify which standards are applicable to which audits. The governmental audit partner, Ian Charge, has split up the list of standards, and you have been assigned the standards below.
1. When applicable, the report should indicate that confidential or sensitive information has been omitted from the report and the reason that such an omission is necessary.
2. The auditor must maintain independence in mental attitude in all matters relating to the audit.
3. The auditor must adequately plan the work and must properly supervise any assistants.
4. When the audit findings involve deficiencies, the elements (criteria, condition, cause and effect) of the findings should be developed.
5. When the financial statement audit report contains an opinion or a disclaimer of opinion, a report on internal control over financial reporting and on compliance with laws, regulations, and provisions of contracts and grants must be provided as part of the report or as a separate report.
6. The auditor must identify in the auditor’s report those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period.
7. The audit organization must establish a system of quality and have an external peer review at least once every 3 years.
8. When the auditor determines that informative disclosures are not reason- ably adequate, the auditor must so state in the auditor’s report.
9. The auditor must exercise due professional care in the performance of the audit and the preparation of the report.
10. Known findings and recommendations from previous engagements that directly relate to the current audit should be considered in planning.
For each item in the preceding list, indicate whether standards are GAAS or GAGAS standards.