CCH Learning Center

Description:

This SAS contains conceptual principles that shape the overall objectives of an audit, and broad, overarching requirements that govern an audit’s conduct. It is intended to be the initiating document for the new Codification of Statements on Auditing Standards that will be issued when all of the AICPA’s Clarity Project standards come into effect. It addresses the overall responsibilities of the independent auditor when conducting an audit of financial statements in accordance with U.S. generally accepted auditing standards, sets forth the auditor’s overall objectives, and explains the nature and scope of an audit designed to meet the auditor’s overall objectives, and the scope, authority and structure of GAAS. It also includes requirements that establish the auditor’s general responsibilities in all audits and defines some twenty terms that will be used throughout GAAS.

A two-page preface to the new Codification, entitled Principles Underlying an Audit Conducted in Accordance With Generally Accepted Auditing Standards, was issued with this SAS. It sets forth broad principles that are organized to provide a structure for the new codification of auditing standards.

Upon completion of this course, you will be able to:

• Explain the overall objectives of the auditor in conducting an audit in accordance with generally accepted auditing standards
• Describe the auditor’s responsibilities in conducting an audit and differentiate them from management’s responsibilities
• Recognize appropriate uses of professional judgment in conducting an audit and differentiate them from inappropriate uses
• Explain the difference between unconditional and presumptively mandatory requirements in generally accepted auditing standards