Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with GAAS (Currently Unavailable)

Author: Lynn Fountain

This course addresses the independent auditor's overall responsibilities when conducting an audit of financial statements in accordance with generally accepted auditing standards (GAAS). Specifically, it sets out the overall objectives of the independent auditor and explains the nature and scope of an audit designed to enable the auditor to meet those objectives. It also explains the scope, authority, and structure of GAAS and includes requirements establishing the general responsibilities of the auditor applicable in all engagements conducted in accordance with GAAS, including the obligation to comply with GAAS.

The AICPA Statement on Auditing Standards (SAS) 122, 123, 128 and 130 address Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards. The statements contain conceptual principles that shape the objectives of an audit, and broad, overarching requirements that govern an audit’s conduct. GAAS are developed and issued in the form of SASs and are codified into AU-C sections. GAAS are written in the context of an audit of FS by an auditor. They can be adapted in the circumstances when applied to other engagements conducted in accordance with GAAS:
• Audits of other historical financial information
• Compliance audits
• Audits of ICFR that are integrated with audits of FS.

GAAS do not address responsibilities of the auditor that may exist in legislation, regulation.

Within this course we will discuss the purpose of a financial statement audit and the relationship of the external auditor with the financial statements. We will then focus on specifics aspects of the objectives of the auditor and the in the conduct of an audit in accordance with GAAS as outlined in AU-C Section 200.

Publication Date: March 2019

Topics Covered

• Purpose of an Audit
• How the Auditor Is Associated with Financial Statements
• Terms
• Control & Detection Risk
• Professional Judgment & Skepticism
• Objective of the Auditor
• Management's Responsibilities
• Audit Evidence and Risk
• Conduct of an Audit
• Small and Governmental Entities
• Ethical Requirements Relating to an Audit of FS

Learning Objectives

• Identify the purpose of an audit
• Recognize how the auditor is associated with the financial statements
• Identify relevant definitions critical to understand GAAS and the audit of FS
• Recognize the overall objectives of the auditor in conducting an audit in accordance with generally accepted auditing standards
• Identify relevant ethical standards required in a GAAS audit
• Identify the auditor's responsibilities in conducting an audit and differentiate them from management's responsibilities
• Recognize the concept of audit evidence and audit risk
• Differentiate between unconditional and presumptively mandatory requirements in generally accepted auditing standards
• Identify GAAS requirements for small to medium entities and governmental entities

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None