which gaas principle concerns the auditors obtaining reasonable assurance? course hero

How does the auditor obtain reasonable assurance?

In order to obtain reasonable assurance, the auditor shall obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion. Reasonable assurance is obtained when the auditor has thereby reduced audit risk to an acceptably low level.

What are the three auditing standards that constitute GAAS?

The 10 standards in the GAAS are grouped into three categories: general standards, standards of field work, and standards of reporting.

What is considered a reasonable level of assurance in auditing?

Reasonable assurance refers to the auditor's degree of satisfaction that the evidence obtained during the performance of the audit supports the assertions embodied in the financial statements.

How does GAAS help the auditor in the conduct of the audit?

Generally accepted auditing standards (GAAS) are a set of systematic guidelines used by auditors when conducting audits on companies' financial records. GAAS helps to ensure the accuracy, consistency, and verifiability of auditors' actions and reports.

Which of the following reflects a concept from the general standards of GAAS?

Under GAAS, which of the following reflects a concept from the general group? The assignment of audit personnel to an engagement where they have no financial interest. The third general standard states that due care is to be exercised in the performance of an audit.

What is GAAS which agency is responsible to set these standards in the US?

The generally accepted auditing standards were created by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA). These guidelines were designed to ensure a specific standard of consistency, accuracy, and accountability across any auditor's review and resulting reports.

Which of the following is an example of reasonable assurance engagement?

A primary example of a reasonable assurance engagement is external audits. External audits occur quarterly or annually for most companies. These audits illustrate all the above features. For example, with external audits, auditors have to provide a high assurance level.

What is the purpose of reasonable assurance?

“Reasonable Assurance” is an unemployment insurance term that indicates a school employee has a contract (written or implied) that indicates they will likely be employed for the following school year, term, or remainder of a school term.

Why does an audit only provide reasonable assurance?

Reasonable expectations Auditors are unable to obtain absolute assurance not because they conduct engagements with insufficient care, but because limitations inherent in the process restrict the ability to guarantee absolute assurance.

Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards?

Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards? An auditor's opinion enhances the degree of confidence that intended users can place in the financial statements.

What are the principles of audit?

Fundamental Principles Governing an Audit:A] Integrity, Independence, and Objectivity: ... B] Confidentiality: ... C] Skill and Competence: ... D] Work Performed by Others: ... E] Documentation: ... F] Planning: ... G] Audit Evidence: ... H] Accounting Systems and Internal Controls:More items...

Which of the following is required documentation in an audit in accordance with generally accepted auditing standards?

A planning memorandum establishing the timing of the audit procedures and coordinating the assistance of entity personnel.

What are the types of audit standards?

The three mandatory elements are the Definition of Internal Auditing, the Code of Ethics, and the International Standards for the Professional Practice of Internal Auditing (Standards).

What are the main auditing standards?

Standards on AuditingStandards on Quality Control (SQCs)SQC 1Quality Control for Firms that Perform Audit and Reviews of Historical Financial Information, and other Assurance and Related Services EngagementsSA 320Materiality in Planning and Performing an AuditSA 330The Auditor's Responses to Assessed Risks57 more rows•Feb 17, 2022

How many auditing standards are there?

The standards on auditing have been divided into 38 standards presently grouped into 6 categories as detailed below.

What are examples of auditing standards?

10 Generally Accepted Auditing StandardsAdequate technical training and proficiency.Independence in mental attitude.Due to professional care. ... Adequate planning and proper supervision.Understanding the internal control structure.Obtaining sufficient competent evidential matter.More items...