10 Audit Standards

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10 Audit Standards

• Page 38

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Page 38generally accepted auditing standards

• General standards - 3
• Fieldwork standards 3
• Standards of reporting - 4

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general standardsthe auditor

• adequate technical training and proficiency to
  perform the audit
• Independence in mental attitude
• due professional care

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standards of field workthe work we do

• adequately plan the work and properly supervise
  any assistants
• sufficient understanding of the internal control
  structure
• sufficient appropriate audit evidence

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standards of reportingthe auditors report

• financial statements in accordance with GAAP
• identify circumstances in which GAAP have not
  been consistently observed
• informative disclosures are adequate
• the auditor must express an opinion, or

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1st general standard

• The auditor must have adequate technical training
• and proficiency to perform the audit

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2nd general standard

• The auditor must maintain independence in mental
  attitude in all matters relating to the audit

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3rd general standard

• The auditor must exercise due professional care
  in the performance of the audit
• and the preparation of the report

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1st standard of field work

• The auditor must adequately plan the work
• and must properly supervise any assistants

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2nd standard of field work

• The auditor must obtain a sufficient
  understanding of the entity and its environment
  including its internal control structure
• to assess the risk of material misstatement of
  the financial statements whether due to error or
  fraud,
• and to design the nature, timing and extent of
  further audit procedures

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3rd standard of field work

• The auditor must obtain sufficient, appropriate
  audit evidence by performing audit procedures to
  afford a reasonable basis for an opinion
  regarding the financial statements under audit

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1st standard of reporting

• The auditor must state in the auditors report
  whether the financial statements are presented in
  accordance with generally accepted accounting
  principles

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2nd standard of reporting

• The auditor must identify in the auditors report
  those circumstances in which such principles have
  not been consistently observed in the current
  period in relation to the preceding period

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3rd standard of reporting

• When the auditor determines that informative
  disclosures are not reasonably adequate, the
  auditor must so state in the auditors report

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4th standard of reporting

• The auditor must either express an opinion
  regarding the financial statements, taken as a
  whole, or state that an opinion cannot be
  expressed.
• When the auditor cannot express an overall
  opinion, the auditor should state the reasons
  therefor in the auditors report.
• In all cases where the auditors name is
  associated with financial statements, the auditor
  should clearly indicate the character of the
  auditors work, if any,
• and the degree of responsibility the auditor is
  taking, in the auditors report