![]() ![]() These general standards provide the underlying framework that is critical in effectively applying the field work and reporting standards" (p. The introduction to Chapter 3 on general standards states: "These general standards concern the fundamental requirements for ensuring the credibility auditors' work …. Furthermore, an audit engagement may be extended to include nonaudit activities for which the assurance is not equivalent to that provided as a result of an audit. For example, external auditors conduct audits of government contracts and grants with private-sector organizations where financial, attestation, and performance objectives are audited. Engagements that are combinationsĪ government audit may be a combination of the foregoing types. Such audits include systematic examination of relevant evidence to provide an independent assessment of the performance of a government organization, program, activity, or function. Attestation examinationĪs noted in the guidance, "attestation engagements can cover a broad range of financial or nonfinancial subjects and can be a part of a financial audit or performance audit." Performance audits Additionally, auditing compliance with regulations is included in this category. ![]() These audits are completed primarily to provide reasonable assurance about whether financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles (GAAP), or with a comprehensive basis of accounting, other than GAAP. THE GUIDANCE FOR AUDITS AND EXAMINATIONSįinancial audits, attestation examinations (considered an equivalent term to audits), and performance audits are guided by GAGAS. A basic requirement for any report provided by a public accountant is that the report must not be any way be misleading or incomplete as to its nature, scope, and level of assurance. The Auditing Standards Board of the AICPA, on the other hand, provides guidance for reporting that requires reports to state explicitly the type of engagement completed and the guidance followed. The reader should be provided with more identifying information. The statement "in accordance with GAGAS" is not sufficiently specific since strategies and procedures differ markedly among audits (or examinations), reviews and agreed-upon procedures. In the 2003 edition, even though nonaudit engagements are included, the same statement is required in reports of all engagements, which is "that the engagement was made in accordance with GAGAS." Yet, engagements that are reviews or agreed-upon procedures have different requirements, which do not include the rigorous standards of audits. In addition to audits, the 2003 edition includes guidance for engagements. The June 2003 edition, considered a revision of the edition issued in June 1994, is, however, markedly different. The title, Government Auditing Standards, is somewhat misleading, because the guidance extends to engagements that are not audits. The AICPA general standard on criteria, and the fieldwork and reporting standards and related statements for attestation engagements, are also included, unless excluded specifically (p. Incorporated in this volume are the fieldwork and reporting standards and related statements on auditing standards for financial audits as declared by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA), unless specifically excluded in the guidance in the Yellow Book. The Yellow Book recognizes the value of other professional standards. 1) RELATIONSHIP BETWEEN GAGAS AND OTHER PROFESSIONAL STANDARDS They provide an overall framework for ensuring that auditors have the competence, integrity, … objectivity, and independence in planning, conducting, and reporting on their work. These standards are broad statements of auditors' responsibilities. The Yellow Book includes standards to guide all audits of governmental units, irrespective of the level of the unit, as well as guidance for reviews and agreed-upon procedures. General Accounting Office.) THE AUTHORITY OF GOVERNMENT AUDITING STANDARDS (At the time of the 2003 revision of the standards, the name of this office was the U.S. Government Auditing Standards, often referred to as the Yellow Book, is the publication that presents generally accepted government auditing standards (GAGAS) promulgated under the leadership of the comptroller general of the United States, who heads the U.S. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |