Generally accepted auditing standards due professional care

private) management's attitude company risk who is performing the audit scope of the audit Internal Controls Company Background Past problems IndustryДЄ 'clean' audit report, indicating the auditor's opinion that a client's financial statements are fairly presented in accordance with agreed-upon criteria What types of things do you need to know in audit planning? Identify when principles have not been consistently applied exampleДЇinancial statements as a whole: BS, IS, CFS, FOOTNOTES Planned and assistants supervised Internal controls understood to understand the nature, timing and extent of the audit EVIDENCE that is sufficient and competentДЄccordance with GAAP principles not CONSISTENTLY applied Express and opinion adequate DISCLOSURE Put thought into before audit and during (JUDGMENT) Training a proficiency are adequate as an auditor Independence in attitude due Professional care in planning and performingДЄdequate training and proficiency as an auditorДon't be influenced by someone else's opinionДue Professional care in planning and performing Serve as the guidelines for and measures of the quality of the auditor's performanceДЄudit auditors, regulate all audits of all publicly traded companiesДЎ. Implies some risk that a material misstatement could be present in the financial statements and the auditor will fail to detect it. Want risk to be small, balance amount of risk your willing to accept, impacts amount of testing to do

The risk that the auditor will unknowingly fail to modify the audit opinion when a material misstatement exists (more testing, risk goes down) (an amount financial statements would be misstated wo change opinion to invest of a stockholder's interest) The magnitude of a misstatement that would likely change the judgment of a reasonable financial statement user. Humans are prone to error, accuracy of financial statements, people play with numbers to make them in their favor, boost investor's confidenceДЄ company that sells its stocks or bonds to the public, giving the public a valid interest in the proper use, or stewasrdship, over the company's resourcesДЄuditors add _ to the information from the agent to the principalД¬an not implement internal controls but can. Audit ch1 and 2 an introduction to assurance and financial statement auditing Question

Generally accepted auditing standards due professional care