The PCAOB has based its auditing standards on ?

GAAS
The 10 standards are considered overall the ?
measures of the quality of the auditors performance
What are the 3 categories that the GAAS standards are sorted into ?
- General standards
- Fieldwork Standards
- Reporting Standards
Which standard applies to all aspects of the engagement from acceptance to
completion?
General standards
Which standards apply to only the portion of the engagement devoted to gathering
evidence?
fieldwork standards
Which standards apply to the manner in which the report will be written ?
Reporting standard
What is the mnemonic device for the 10 generally accepted auditing standards ?
TIPPICANOE
What does the T stand for in TIPPICANOE ?
Training and Proficiency
What does the first I stand for in TIPPICANOE ?
Independence
What does the first P stand for in TIPPICANOE ?
Professional Care
What does the second P stand for in TIPPICANOE ?
Planning and Supervision
What does the second I stand for in TIPPICANOE ?
Internal Controls
What does the C stand for in TIPPICANOE ?
Corroborative Appropriate Audit Evidence
What does the A stand for in TIPPICANOE ?
Accounting Principles in Accordance with GAAP
What does the N stand for in TIPPICANOE ?
No new principles
What does the O stand for in TIPPICANOE ?
Omitted Disclosures
What does the E stand for in TIPPICANOE ?
Express an opinion
Of the ten standards which of them fall under General Standards ?
- Training and Proficiency
- Independence
- Professional Care
Of the ten standards which of them fall under Fieldwork Standards ?
- Planning and Supervision
- Internal Controls
- Corroborative Appropriate Audit Evidence
Of the ten standards which of them fall under Reporting Standards ?
- Accounting Principles in accordance to GAAP
- No new principles - Consistency
- Omitted Disclosures - none
- Express an opinion
the 3 general standards (TIP) look for what ?
Qualification of auditor and quality of work
Under the training and proficiency standard the audit must be performed by ?
A person or persons having adequate technical training and proficiency as an auditor
What do you need to have adequate technical training and proficiency ?
- Proper Education in accounting
- Knowledge of industry & business
- Practical experience
In all matters relating to the assignment what GAAS must be obtained by the auditor or
auditors ?
Independence
With independence you must have the ability to act with ?
Integrity and objectivity
In order to be independent who all have to be dependent from the assignment ?
you, your spouse, dependent kids or dependent relatives
What GAAS must be exercised in the performance of the audit and preparation of the
report ?
Due professional care
In due professional care what is used at every level ?
Critical review of judgement
To professionally practice Due professional care the auditor performing the audit must
be a ?
Skill and care of a prudent CPA
What qualifies as a skill and care of a prudent CPA ?
- Preparation of complete workpapers
- Operating without negligence/Due diligence
- Professional skepticism - Maintaining an objective attitude during the audit
- Acting with competency and Diligence
The 3 standards of Fieldwork must achieve ?
How audit is planned and how audit evidence is accumulated and evaluated
What must the auditor do under the planning and supervision standard ?
the auditor must adequately plan the work and must properly supervise any assistents
under the Internal controls Standard the auditor must ?
obtain a sufficient understanding of the entity and the environment
the auditor needs to obtain an understanding of the entity and its environment to ?
Asssess the risk of material misstatement of the financial statements whether due to
error or fraud and to design the nature, timing, and extent of future audit procedures
How must an auditor obtain Corroborative audit evidence (GAAS) ?
By performing audit procedures to afford reasonable basis for an opinion regarding the
financial statements under audit
What is the goal for the Reporting Standards ?
Preparation and content of the audit report
The GAAS for Accounting Principals in Conformity with U.S. GAAP the report must
state what ?
Whether the financial statements are presented in conformity with U.S. Generally
Accepted Accounting Principles (GAAP)
The Accounting Principles in Conformity with U.S. GAAP are ?
Explicitly stated in the report
Under the GAAS No new Accounting Principles applied what are they looking for ?
Consistency
In regards of consistency the report must identify those circumstances in which
Principles have not been consistently observed in the current period in relation to the
proceeding period
The GAAS Omitted Informative Disclosures will have informative disclosures in the
financial statements are to be regarded as ?
Reasonably adequate unless otherwise stated in the report
Under the GAAS the report must contain either what ?
- An expression of opinion regarding the financial statements
- taken as a whole
- an assertion to the effect that an opinion cannot be expressed
What happens when an overall opinion cannot be expressed ?
The reasons should be stated
In all cases where the auditors name is associated with the financial statements the
report should contain ?
a clear-cut explanation of the auditors work, if any, and the degree of responsibility the
auditor is taking
how do you not become negligent
by adhering to the standards of GAAS
what does CPE stand for
continuing professional education
With professional Skepticism means ?
You question everything
What is the overall objective of the auditor ?
to give an objective
if reliance on internal control is high ?
We believe the controls are being used effectively
Substantive testing is used to obtain ?
sufficient appropriate audit evidence
If reliance is high we will do less ?
Substantive testing