Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users (Boynton & Johnson, 2006). In auditing there are many attributes that describes the auditor’s work. Elements of the Generally Accepted Auditing Standards are followed by auditors. The Generally Accepted Auditing Standards apply to financial, operational, and compliance audits. Auditing public traded companies has been effected by the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board. Auditors have additional responsibilities because of the act and the PCAOB. Elements of GAAS
The three elements of the Generally Accepted Auditing Standards are the general standards, standards field of work, and the standards of reporting. The general standards element refers to qualifications of the auditor and his or her work. The auditor must have the proper training and be proficient in his or her work. The auditor must be to perform the audit and findings without the influence of the manager of the company. The auditor must meet the requirements of the AICPA’s Code of Professional Conduct. Due professional care is a responsibility of the auditor to review the work and make honesty decisions.
Standards field of work is the second element and it pertain primarily to the conduct of the audit at the entity's place of business (Boynton & Johnson, 2006). The auditor needs have the proper planning when conducting the audit and be able to supervise those involved in the audit with less experience. The auditor has to be knowledgeable of the entity and its environment, and the internal controls. The auditor needs an understanding of the objectives, strategies, and business risks that are often correlated with the risk of material misstatement in financial statements to plan an...
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