Gail McCook, the administrative assistant of a local CPA firm, merged the files listing GAAS standards and
Question:
1. Pertinent information should be communicated to individuals contracting for or requesting the audit.
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. Auditors apply certain limited procedures in connection with RSI to provide assurance that it is fairly presented in relation to the basic financial statements.
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.
Required
For each item in the preceding list, indicate whether standards are GAAS or GAGAS standards.
Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the...
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Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-0078025822
17th edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson
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