1. Auditors of U.S. public companies should follow the PCAOB's auditing standards.
2. There is not much commonality among the auditing standards set by the PCAOB, AICPA, and IAASB.
3. The ten standards underlying the PCAOB's auditing standards fall within four different categories.
4. The purpose of an audit is to enhance the degree of confidence that users can place on the financial statements.
5. As a precondition to applying the audit opinion formulation process, the auditor needs to understand the client's responsibilities for internal control over financial reporting and the financial statements.
5. The audit opinion formulation is described as consisting of five phases.
7. The cycle approach to auditing provides a way for breaking the audit up into manageable components.
8. Within a particular cycle, the auditor focuses on the flow of transactions within that cycle, including how transactions are initiated, authorized, recorded, and reported.
9. The completeness assertion is typically the more relevant assertion for assets.
10. Within each cycle, the audit is designed to test management assertions.

  • CreatedSeptember 22, 2014
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