Auditing Research Paper

1699 WordsMar 1, 20117 Pages
Auditing Research Paper “Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria” (Arens A., Elder R. J., Beasley M. S. 2010). Auditing of a company should be done by an independent person that has no affiliation with the company that is being audited. The auditor needs to be educated enough to process the audit. There are three different types of auditors, external, internal, and government. The external is the independent person that has no affiliation to the company. The audit they perform on the financial statements allows the general public and investors to see the whole picture on how the company is…show more content…
The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection. The PCAOB is directed by the Sarbanes-Oxley Act of 2002 to establish auditing and related professional practice standards for registered public accounting firms to follow in the preparation and issuance of audit reports. “(PCAB 2011). GAAS or Generally Accepted Accounting Standards. These are standards that one must abide by. First the auditor must have the proper training and experience to perform an audit. Secondly the auditor must be independent in regards to the audit. Lastly the auditor must remain professional and give an accurate report. The regulations surrounding the GAAS are that there is proper supervision and planning. There must be a clear understanding of the industry that is being audited. There are “four reporting standards require the auditor to prepare a report on the financial statements taken as a whole, including informative disclosures. The reporting standards also require that the report state whether the statements are presented in accordance with the GAAP” (Arens A., Elder R. J., Beasley M. S. 2010). IAASB or International Auditing and Assurance Standards Board “is the worldwide organization for the accountancy profession” (Arens A., Elder R. J., Beasley M. S. 2010).
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