Kế toán, kiểm toán - Chapter 2: Professional standards

Professional StandardsChapter 2 Public Company Accounting Oversight BoardAuditing, Attestation, Quality Control, Independence, Ethical Standards for audits of public companies American Institute of Certified Public AccountantsAuditing, Attestation, Quality Control, Independence Ethical, Accounting and Review Standards for engagements involving nonpublic companiesState Boards of AccountancyLicense CPAs and CPA firms to practice in jurisdictionsAuthority of Organizations2Generally Accepted Auditing Standards--General StandardsAdequate technical training and proficiencyIndependence in mental attitude is to be maintainedDue professional care is to be exercised3Generally Accepted Auditing Standards--Standards of Field WorkWork is to be adequately planned and properly supervisedSufficient understanding of internal control is to be obtainedSufficient competent evidential matter is to be obtained to afford a reasonable basis for the opinion4Generally Accepted Auditing Standards--Standards of ReportingState whether the financial statements are presented in accordance with GAAPIdentify circumstances in which such principles have not been consistently appliedInformative disclosures are adequate unless otherwise stated in the reportReport should clearly state the degree of responsibility being assumed by the auditors by expressing an opinion or stating that one cannot be expressed, and the reason therefor5The GAAS Hierarchy 6 Auditor Responsibility for the Detection of Errors and FraudObtain information to assess the inherent risks and fraud risksInformation about the company and its environmentDiscussion among audit team members Inquiries of management and othersPlanning analytical procedures, including those involving revenueAssess the risk of errors and fraud that may cause the financial statements to contain a material misstatement.Based on that assessment, plan and perform the audit to obtain reasonable assurance that material misstatements, whether caused by errors or fraud, will be detected (including those procedures required by SAS No. 99.Exercise due care in planning, performing and evaluating the results of audit procedures, and the proper degree of professional skepticism to achieve reasonable assurance that material misstatements due to error or fraud will be detected.7 Auditor Responsibility for the Detection of Illegal ActsThose that could have a direct and material effect on financial statement amounts--same as for errors and fraud. An audit obtains reasonable assurance of detecting these types of illegal acts.Those with an indirect effect on financial statement amounts:Be aware of possible occurrence.If information comes to the auditor’s attention, apply audit procedures directed at determining whether an illegal act has occurred. An audit does not provide assurance that indirect-effect illegal acts will be detected.8The Standard Auditors’ Report for Nonpublic CompaniesTitleAddresseeContentIntroductory ParagraphScope ParagraphOpinion ParagraphSignatureDate9 The Standard Auditors’ Report--Introductory ParagraphWe have audited the accompanying balance sheet of XYZ Company as of December 31, 20XX, and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. 10 The Standard Auditors’ Report—Scope ParagraphWe conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 11 The Standard Auditors’ Report--Opinion ParagraphIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of XYZ Company as of December 31, 20XX, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.12 The GAAP HierarchyAuthoritative Body PronouncementsPronouncements of Bodies Composed of Expert Accountants, That Are Exposed for Public CommentPronouncements of Bodies of Expert Accountants That Are Not Exposed for Public CommentWidely Recognized Practices and PronouncementsOther Accounting Literature13Public Company Audit ReportTitle is “Report of Registered Independent Public Accounting Firm”Refers to standards of the PCAOB rather than GAASIncludes a fourth paragraph that refers to report on internal controlCity and State (or Country) of audit firm must be included14Applicability of SSAEs 15Elements of Quality ControlIndependence, Integrity, and ObjectivityPersonnel ManagementAcceptance and Continuance of Clients and EngagementsEngagement PerformanceMonitoring16Regulation of the Public Accounting ProfessionPublic CompaniesPublic Company Accounting Oversight Board & the SECRegistration of public accounting firms that audit public companiesConduct inspections of public company practice of registered public accounting firmsNonpublic CompaniesAICPA & State Boards of AccountancyPeer review for nonpublic practice segments17International Audit ReportContains expanded description of management’s responsibilityContains an enhanced explanation of the audit processMay state “present fairly, in all material respects” or “give a true and fair view”Report may indicate that the financial statements comply with the provisions of the country’s relevant statutes or lawsMust include city of the auditors’ officeMay be signed using the personal name of the auditor or the audit firm or both18