Auditing Theory

1959 WordsMar 18, 20128 Pages
The Authority Attaching to Philippine Standards Issued by the AASC Engagement Standards | Application | 1. Philippine Standards on Auditing (PSAs) | * Audit of historical financial statements | 2. Philippine Standards on Review Engagements (PSREs) | * Review of historical financial information | 3.Philippine Standards on Assurance Engagements (PSAEs) | * Assurance engagements dealing with subject matters other than historical financial information | 4. Philippine Standards on Related Services (PSRSs) | * Compilation engagements * Engagements to apply agreed-upon procedures to information * Other related services engagements as specified by the AASC | 1. PSAs, PSREs, PSAEs and PSRSs are collectively referred to…show more content…
3. Consulting (or advisory) engagements, such as management and tax consulting. Elements of an Assurance Engagement 1. A three-party relationship involving: * A practitioner (CPA); CPA holds valid certificates issued by the Board of Accountancy (Public Practice, Industry, Commerce, Public Sector or Education) Fundamental Principles: * Integrity * Objectivity * Professional Competence and Due Care * Confidentiality * Professional Behavior * Application of Technical Standards * A responsible party; and * Intended users. 2. An appropriate subject matter; Forms * Financial/Non-financial Performance or Conditions; * Physical Characteristics * Capacity of Facilities * Systems and Processes * Behavior 3. Suitable criteria Characteristics * Relevance * Completeness * Reliability * Neutrality * Understandability 4. Sufficient appropriate evidence, and; Quantity and quality of evidences 5. A written assurance report in the form appropriate to a reasonable assurance engagement or a limited assurance engagement. OVERALL OBJECTIVES OF THE INDEPENDENT AUDITOR AND THE CONDUCT OF AN AUDIT IN ACCORDANCE WITH PSAs 1. In conducting an audit of financial statements, the auditor’s OVERALL OBJECTIVE are: a) To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
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