February 22nd, 2012
Generally Accepted Auditing Standard
• Describe how these standards apply to financial, operational, and compliance audits.
• Explain the effect that the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board (PCAOB), will have on audits of publicly traded companies. • Discuss the additional requirements that are placed on auditors from this act and the actions of the PCAOB.
Format your paper consistent with APA guidelines.
JPMorgan Chase Bank is a publicly traded company and uses an external-independent auditing firm, PricewaterhouseCoopers LLP, to provide an annual audit. JPMorgan Chase Bank established an audit committee to assist in board oversight over several areas. These areas include the following: the oversight of the qualifications and independence of the independent registered public accounting firm; the performance of the corporations internal audit function and independent registered public accounting firm; and the management’s responsibilities to assure an effective systems of controls are in place to safeguard assets and income, assure the integrity of the company’s financial statements, and maintain compliance with the company’s ethical standards, policies, plans, and with laws and regulations (Chase, n.d.). The generally accepted auditing standards (GAAS) are a list of standards an auditor has to follow. The list consists of 10 elements and is classified into three sections. The general standards sections include the following three standards: someone with proper technical training must complete the audit, auditor must be able to have a sense of independence in the metal attitude, and professional care should be exercised during the audit and the preparation of the report. The standards of field work section include the following three standards: work should be adequately planned and properly...