...Generally Accepted Auditing Standard Paper ACC/491 Generally Accepted Auditing Standards Paper Auditing is defined as “a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the results to interested users” (Louwers, Ramsay, Sinason, & Stawser, p. 3). This is basically saying that auditors are given the job of ensuring that all processes are recorded correctly and obtained for the required amount of time. I will discuss the nature and functions of auditing, while giving examples from my current employer, Capital One. I will then describe the elements of the Generally Accepted Auditing Standards, and also tell how these standards apply to financial, operational and compliance audits. I will explain the effect that the Sarbanes-Oxley Act of 2002 and the Public Company Accounting Oversight Board will have on audits on publicly traded companies. Last, I will discuss the additional requirements that are placed on auditors from the Sarbanes-Oxley Act and the actions of the Public Company Accounting Oversight Board. The auditing process can be very tedious. As an auditor, you must pay close attention to detail. As a Lead Teller with Capital One, I have the responsibility of not only ensuring that all processes are done correctly and retained for the amount of time specified by the company...
Words: 695 - Pages: 3
...Nature and Functions of Auditing August 31st, 2012 Write a 700- to 1,050-word paper in which you explain the nature and functions of auditing. Relate your explanation to the audit functions in your organization, or an organization with which you are familiar. In your paper, be sure to address the following: • Describe the elements of the Generally Accepted Auditing Standards (GAAS). • 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. This paper discusses the nature and functions of auditing addressing the elements of the Generally Accepted Auditing Standards (GAAS), how these standards apply to financial, operational, and compliance audits, the effect that the Sarbanes-Oxley Act of 2002 (SOX) and the Public Company Accounting Oversight Board (PCAOB) will have on audits of publicly traded companies, and the additional requirements that are placed on auditors from SOX and PCAOB. Nature and Functions of Audit Auditing is a systematic process of obtaining and evaluating evidence regarding assertions about economic actions, events and processes wherein evaluations are made and verified as true and correct. The auditing process consists of gathering...
Words: 439 - Pages: 2
...Generally Accepted Auditing Standards Paper Name Institution Generally Accepted Auditing Standards Paper Recently, the need for enhanced auditing regulations has increased. This has been orchestrated by the demand from the public for an increase in the regulation of corporate accounting. In particular, following a number of scandals that have befallen major companies leading to their bankruptcy, investors have been keen on the auditing standards as they do not wish to risk their money. The aim of this paper is to discuss the elements of GAAS, as a set of auditing standards that are generally used in the U.S.A. The paper will specifically examine how these standards are applied in financial and compliance audits. It will also highlight the impact that the PCAOB and SOX have had on the auditing of public companies. The extra requirements imposed on auditors by the PCAOB and the SOX will also be discussed. In the later years of 1940, members of the AICPA, an institution tasked with overseeing accounting standards in the U.S. then, came up with a number of standards that were to be used by auditing professionals (Kinyo, 2013). The standards were afterward included into Statements on Auditing Standards, commonly known by the abbreviation, SAS. They consist of ten generally accepted standards for auditing, which are categorized into three groups. The first category consists of general...
Words: 952 - Pages: 4
...Contemporary Auditing 1, Complete Course + Final Exam Purchase here http://chosecourses.com/acc-491-contemporary-auditing-1-complete-course-final-exam Product Description WEEK 1 Individual Assignment, Generally Accepted Auditing Standards Discussion Questions 1, 2 and 3 Weekly Summary WEEK 2 Individual Assignment from Text, Questions 1-23 Learning Team, Auditing, Attestation, and Assurance Services Paper 1 Learning Team, Auditing, Attestation, and Assurance Services Paper 2 Discussion Questions 1, 2 and 3 WEEK 3 Individual Assignment from Text, 5-29, 5-30, 6-20, 6-21, 6-22, 7-22 Learning Team Assignment, Assessing Materiality and Risk Simulation Paper Learning Team Assignment, Assessing Materiality and Risk Assessment Presentation Learning Team Assignments from Text, Exercises 6-26, 7-25 Discussion Questions 1, 2 and 3 WEEK 4 Individual Assignment from Text, 8-15, 8-16, 10-31, 10-32 Learning Team Assignment - Apollo Shoes Case Assignment Discussion Questions 1, 2 and 3 WEEK 5 Individual Assignment from Text, 11-6, 11-8, 11-9, 13-8 Learning Team Assignment - Audit Sampling Case Memo Weekly Summary Final Examination ACC 491 Contemporary Auditing 1, Complete Course + Final Exam Purchase here http://chosecourses.com/acc-491-contemporary-auditing-1-complete-course-final-exam Product Description WEEK 1 Individual Assignment, Generally Accepted Auditing Standards Discussion...
Words: 890 - Pages: 4
...Generally Accepted Auditing Standards Paper Gary Varnell University of Phoenix ACC 490 Auditing Aaron Strenkoski July 11, 2011 Introduction This paper is designed to explain the nature and functions of auditing, relate these functions to the audit functions of the Shawnee News-Star, describe the elements that make up the Generally Accepted Auditing Standards and how these standards apply to financial, operational, and compliance audits. This paper will also explain the effect that the Sarbanes-Oxley Act of 2002 as well as the Public Company Auditing Oversight Board (PCAOB) will have on the audits of companies that are publicly traded, and will also discuss the additional requirements that are placed on auditors as a result of the Sarbanes-Oxley Act as well as the actions of the PCAOB. Auditing is defined as “ 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, p. 6). The auditing process begins with the auditor obtaining information of an entity and evaluating, in an unbiased manner, this information as it relates to the processes, economic transactions and procedures of the entity. When evaluating this information, the auditor must ensure that the information complies with Generally Accepted Accounting Principles (GAAP) and any...
Words: 1122 - Pages: 5
...Generally Accepted Accounting Standards Paper Prithvi Shenoy ACC491 October 14, 2013 Michael Milkonian Abstract The importance of Auditing has gained considerable attention ever since its introduction in the mid-1800s. According to FASB, Statement of Financial Accounting Concepts No. 2, relevance and reliability are central to making accounting information useful for decision makers. To achieve this, auditors are required to obtain “reasonable assurance that those financial statement are presented fairly in all material respects” (Boynton & Johnson, 2006). This paper aims to explain the nature and types of auditing which is governed by the Generally Accepted Auditing Standards (GAAS). The paper then discusses the effects of Sarbanes-Oxley (SOX) Act 2002 and the Public Company Accounting Oversight Board (PCAOB) on publicly traded companies (issuers). Finally, the changes in the auditing environment with respect to the additional responsibilities placed on auditors and PCAOB as a result of the enforcement of SOX Act 2002 is discussed in the paper. Generally Accepted Accounting Standards Paper The elements of GAAS In response to the McKesson & Robbins’ accounting scandal in 1938, the AICPA introduced the 10 Generally Accepted Auditing Standards (GAAS) in 1939 to provide “guidance on the conduct of an audit” as well as an “overview of the timing of the different phases of an audit engagement” (Louwers and Ramsay et al., 2007). The 10 basic standards can be...
Words: 1276 - Pages: 6
...Generally Accepted Auditing Standards Joey Wines Franciscan University Generally Accepted Auditing Standards Generally Accepted Auditing Standards, also known as GAAS, is a rather broad topic with many guidelines to follow. An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. A short definition of GAAS is the set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring the accuracy, consistency and verifiability of auditors' actions and reports (Investopedia). There are a total of 10 standards that are broke up into three main sections. These three sections include the general standards, standards of fieldwork and standards of reporting. Each section is littered with requirements that the auditor and the subject company must meet (Investopedia). In short, an auditor must adequately plan the audit in advance, be independent of the client at all times, and always obtain reliable evidence (Investopedia). The companies must present their financial statements in accordance with GAAP, remain consistent in their reporting, and explicitly disclose all pertinent information (Investopedia). Auditing procedures differ from auditing standards. Auditing procedures are acts that the auditor performs during the course of an audit to comply with auditing standards. The first section I will talk about for the Generally Accepted Auditing Standards are the general standards...
Words: 1470 - Pages: 6
...purpose of this paper is to explain the nature and functions of auditing in Indian Casino Industry. Generally, the Indian Casinos are required to issue the annual audited financial statements and compliance audit reports. Users of financial statements look to the independent auditor’s report for assurance about the reliability of information and its conformance to generally accepted accounting principles. The Casino’s audit process is a systematic process designed to obtain and evaluate evidence regarding management’s assertions about economic action and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to intended users. The Casino’s financial statement audit involves obtaining and evaluating evidence about entity’s presentation of its financial position, results of operations, and cash flows for the purpose of expressing an opinion on whether they are presented fairly in conformity with established criteria-usually generally accepted accounting principles. The auditors’ responsibility is to express opinion on the Casino’s financial statements based on their audit which were conducted in accordance with GAAS. The Casino’s compliance audit involves obtaining and evaluating evidence to determine whether the Casino conforms to Minimum Internal Control Standards (MICS) issued by National Indians Gaming Commission (NIGC). GAAS is the most widely recognized auditing standard associated with...
Words: 766 - Pages: 4
...Generally Accepted Auditing Standards Paper ACC/491 Contemporary Auditing Santos Alarcon January 11, 2015 Describe the elements of GAAS? Generally Accepted Auditing Standards (GAAS) are “sets of standards against which the quality of audits are performed and may be judged” (Generally Accepted Auditing Standards, 2014). According to AU Section 150, there are three general standards, three fieldwork standards, and four reporting standards. In the United States, these standards are developed by the Public Company Accounting Oversight Board since the passage of the Sarbanes-Oxley Act in 2002. The three general standards require the auditor to remain mentally independent in all matters related to the audit, to have technical training that is adequate and proficient to perform the audit, and to exercise professional care while performing the audit, and also while preparing the report. The three fieldwork standards require the auditor to properly plan the work and to supervise assistants, to sufficiently understand the company and its environment, and to obtain enough audit evidence to support a reasonable basis for an opinion regarding the financial statements under audit. The four standards of reporting require the auditor to state in his/her report whether the financial statements are presented in accordance with GAAP, they have to identify when GAAP principles have not been consistently observed, they have to include in the auditor’s...
Words: 929 - Pages: 4
...Generally accepted auditing standards paper Santiago Vasquez ACC / 491 September 2014 Arlys Erickson Generally Accepted Auditing Standards Paper With ongoing accounting and bribery scandals worldwide much attention has been paid to the issue of global harmonization of generally accepted accounting principles over the past few years. To face these challenges in the US, the Auditing Standards Board (ASB) that is a division of the American Institute of Certified Public Accountants (AICPA) promulgated the Generally Accepted Auditing Standards or GAAS. The GAAS refers to a set of systematic guidelines used by auditors while performing audits on companies’ financial statements, thus ensuring its accuracy, consistency, and verifiability (Morris, 2013). Hence, these standards provide the ground rules for conducting every audit in such a way that the auditor is able to properly express an opinion on a company’s financial statements giving reasonable assurance to stakeholders interested in those statements about whether (or not) these statements fairly present the company's financial condition. Audit Section 150 states that they are 10 principles divided in three main sections each littered with requirements that the subject company and auditor must meet: 3 General standards requiring that an auditor must have adequate technical training and proficiency, maintain independence and exercise due professional care, in order to properly perform any audit. Additionally...
Words: 734 - Pages: 3
...Generally Accepted Auditing Standards 43 AU Section 150 Generally Accepted Auditing Standards (Supersedes SAS No. 1, section 150.) Source: SAS No. 95; SAS No. 98; SAS No. 102; SAS No. 105; SAS No. 113. Effective for audits of financial statements for periods beginning on or after December 15, 2001, unless otherwise indicated. .01 An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. Auditing standards provide a measure of audit quality and the objectives to be achieved in an audit. Auditing procedures differ from auditing standards. Auditing procedures are acts that the auditor performs during the course of an audit to comply with auditing standards. Auditing Standards .02 The general, field work, and reporting standards (the 10 standards) approved and adopted by the membership of the AICPA, as amended by the AICPA Auditing Standards Board (ASB), are as follows: General Standards 1. The auditor must have adequate technical training and proficiency to perform the audit. 2. 3. The auditor must maintain independence in mental attitude in all matters relating to the audit. The auditor must exercise due professional care in the performance of the audit and the preparation of the report. Standards of Field Work 1. The auditor must adequately plan the work and must properly supervise any assistants. 2. The auditor must obtain a sufficient understanding of the entity and its environment, including...
Words: 1607 - Pages: 7
...Auditing, Attestation, and Assurance Services ACC491 Auditing, Attestation, and Assurance Services This paper discusses and analyzes three different services provided by Certified Public Accountants (CPAs), namely: auditing, attestation, and assurance services. Surprisingly, assurance service is the broadest term among three. It includes auditing and attestation services. The most commonly heard service, auditing, is the narrowest service that a CPA firm provides. The attestation service lies in between auditing and assurance. Each of these services is valuable to the public and the clients requesting these services. For each service, the team will first give a definition, and provide an example of each service. Team C also discusses who would use these types of services as well as the reason behind doing so. Finally, the team will provide some research about what standards apply to each service and what organization establishes them. Auditing 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, p. 6). An example of auditing is auditing a company’s financial statements. “ A financial statement audit involves obtaining and evaluating evidence about an entity’s presentation of its financial position, results of operations...
Words: 1071 - Pages: 5
...Quality Due to several recent accounting scandals over the last 20 years, regulatory organizations such as the SEC and AICPA have required a higher standard for auditors to comply. All audits are expected to conform to Generally Accepted Auditing Standards (GAAS), which would lead one to believe that all audits are of the same quality. This however is not the case. In this paper I will discuss the issues that most greatly affect audit quality such as the size of the audit firm, independence of the auditor, and the monetary considerations given. These factors also affect management’s decisions to select a particular audit firm. Audit quality is most heavily influenced by the size of the audit firm and the perceived reputation of that firm. The larger a firm, the more stress that is put on performing a quality audit due to reputation losses in the event of audit failures is likely to be greater for large audit firms (DeAngelo). Large audit firm must limit audit failure to reduce litigation issues that negatively affect the reputation of their firm. A firm’s size also affects the dependence that the firm has on each of their customers. The smaller a firm is, the more they rely on a single customer for revenue and continued business. This decreases the likelihood that a material misstatement will be disclosed in the auditing report. Whereas a bigger audit firm has a larger client portfolio and a smaller dependence on that client for continued business. In these cases, you would...
Words: 826 - Pages: 4
...Faculty: Dr. Timothy Brown Introduction The purpose of the following paper is to address common terms used in accounting, to include Generally Accepted Accounting Principles (GAAP), double entry accounting, historical cost, accrual basis vs. cash basis accounting and current assets and liabilities vs. non-current items. I will also describe the general organization of the following three companies; Apple, Inc., Swatch Group, and Nikon. In doing so, I will attempt to determine and demonstrate what is more useful – net income or cash from operating activities. Part I The field of accounting can be understood as the art of analyzing and interpreting data. Every organization uses a form of accounting in its day-to-day operations. While some may use it knowingly or unknowingly, nonetheless, accounting is an indispensable method in understanding any business/endeavor in today's global marketplace. It is the means of providing the financial information of any given organization. It summarizes all the company’s transactions and provides a clear image of the business. Accounting keeps the record of all financial reports which is very important for all the managers and stakeholders, such as shareholders, creditors or owners. Among the terms that are necessary to be familiar with and understand are the following: Generally Accepted Accounting Principles (US GAAP) – Accountants use Generally Accepted Accounting Principles to govern them in recording and reporting financial information...
Words: 1405 - Pages: 6
...straight, talk straight” as it emphasis on honesty. 1987 : David Lawrence appointed as Androids’ partner in charge of auditing Enronaa’s accounts. His job was to check Enronaa’s accounts and to make sure that they fairly represent the state of the business. 1997 : US SEC found Androids guilty of issuing materially false and misstatement audit reports on Solid Waste financial statements for the period 1993 through 1996. Androids and Solid Waste agreed to pay USD 229 million to settle the class-action suit. The Solid Waste case followed Androids’ decision to pay USD 110 million to settle a lawsuit on audits at Sunbaemic. Both cases are the point of discussion between David and Ken Bailey, a junior partner to solve the Enronaa’s case. 2001 : David began to painfully explain the technical intricacies of Enronaa’s accounting to Ken. Both of them knew that the firm is in deep trouble and another scandal in the likes of Enronaa may end their business. The future of 85,000 staffs in 390 offices in 84 countries lies in David’s hand. Protagonist/Decision-maker Obviously, the decision-maker of the case is David Lawrence; one of the Androids’s partners. He is in charge of the Enronaa’s accounts for the past 16 years since 1987. He will decide whether to proceed with shredding Enronaa’s documents or not due to the lawsuit by SEC. Problems i. Accounting Standard Non-Compliance • There are evidences suggested that Androids assisted Enronaa to illegally “puff up” the reported...
Words: 772 - Pages: 4
