Chapter two: Professional Requirements
Self-regulated: the standards governing audits had been established by users of the career themselves Sarbanes-Oxley Acct of 2002
Created: Public Firm Accounting Oversight Board (PCAOB) to provide external and self-employed oversight within the audits of public choices Responsible for registering public accounting firms, creating standards intended for audit engagements, and checking the quality of audits conducted by public accounting firms ****Generally Accepted Auditing Standards (GAAS)****
AICPA's Auditing Standards Board introduced Transactions of Auditing Procedures (1939-1972)and Statement of Auditing Criteria (1972-present): to supply guidance for the conduct of audits PCAOB issues auditing standards that are subject to authorization by the SECURITIES AND EXCHANGE COMMISSION'S Taken with each other, the relevant pronouncements of the AICPA and PCAOB are collectively referred to as the generally accepted auditing standards (GAAS) 1 . A pronouncement issued by the AICPA prior to April 2003 that has not recently been amended or perhaps suspended by the PCAOB (Interim Auditing Standards) 2 . A pronouncement granted by the PCAOB that has been given the green light by the SEC (Auditing Standard) Auditing Types of procedures: the particular and specialized activities that auditors take to get hold of evidence in a specific taxation engagement Auditing Standards: quality guides for the audit that apply to most audits 3 categories of GAAS:
1 ) General Criteria
2 . Requirements of Discipline Work
three or more. Standards of Reporting
****Fundamental Principle: Responsibility****
The fundamental rule of responsibility relates to the private integrity and professional skills of an auditor Auditors are responsible for:
1 ) Having appropriate competence and capabilities to execute the taxation 2 . Complying with relevant ethical requirements
3. Preserving professional skepticism and doing exercises professional judgment, through the preparing and performance from the audit ****Fundamental Principle:...
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