Professional Documents
Culture Documents
NILAY B PATEL
VISHAL S TEKCHANDANI
VIJAY K BHATIA
SOHAIL I SHAIKH
RESPONSIBILITIES OF
AUDITORS
The auditor is concerned with the internal
controls over the reliability of financial
reporting, including the management of risks
that may result in material misstatement of
the financial statements. With respect to the
effectiveness and efficiency of operations.
Statement on Auditing Standard (SAS) 109
recognizes that related controls are relevant
to an audit if the controls relate to information
or data used in applying audit procedures
(e.g., controls pertaining to non-financial data
that the auditor may use in analytical
procedures, such as production statistics).
Similarly, with respect to compliance with laws
and regulations, SAS 109 indicates that
controls pertaining to detecting non-
compliance with laws and regulations that
have a "direct and material effect" on the
financial statements--such as controls over
compliance with income tax laws and
regulations used in determining the income
tax provision--may be relevant to the audit.
AUDITING STANDARDS
There are basically ten auditing standards
declared by US general accounting and
auditing standards which includes general
standards, standards of field work and
standards of reporting.
General Standards
The auditor must have adequate technical
training and proficiency to perform the audit.
The auditor must maintain independence in
mental attitude in all matters related to the
audit.
The auditor must use due professional care
during the performance of the audit and the
preparation of the report.
Standards of Field
Work
The auditor must adequately plan the work and
must properly supervise any assistants.
The auditor must obtain a sufficient
understanding of the entity and its environment,
including its internal control, to assess the risk of
material misstatement of the financial statements
whether due to error or fraud, and to design the
nature, timing, and extent of further audit
procedures.
Standards of Reporting
The auditor must obtain sufficient appropriate audit
evidence by performing audit procedures to afford a
reasonable basis for an opinion regarding the financial
statements under audit.
The auditor must state in the auditor's report whether
the financial statements are in accordance with
generally accepted accounting principles (GAAP).
Responsibilities of
Auditors
The auditor must have adequate technical training
and proficiency to perform the audit.
The auditor must maintain independence in mental
attitude in all matters related to the audit.
The auditor must use due professional care during
the performance of the audit and the preparation of
the report.
DUTIES OF AUDITORS
Establishing standards on auditing and
assurance,
·Investigation of suspected irregularities
concerning auditors of PLCs,
·Registration and supervision of auditors and
firms conducting auditing and assurance
services for PLCs,
Auditors Suggestion
The auditor must either express an opinion regarding the
financial statements, taken as a whole, or state that such an
opinion cannot be expressed in the auditors report.
When the auditor cannot express an overall opinion, the
auditor should state the reasons therefore in the auditor's
report.
In all cases where the auditor's name is associated with the
financial statements, the auditor should clearly indicate the
character of the auditor's work, if any, and the degree of
responsibility the auditor is taking, in the auditor's report.
Ethics & Auditing