Statement On Auditing Standards: Statement Of Auditing Standards

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Statement of Auditing Standards #54
AU Section 317

AC410 – Auditing II

DeeAnna Moore
February 8, 2015

STATEMENT ON AUDITING STANDARDS

Dictionary.com has defined audit as: “an official examination and verification of accounts and records, especially of financial accounts; a report or statement reflecting an audit; a final statement of account.” The Statement on Auditing Standards (abbreviated SAS) were created in 1972 to aid external auditors during the auditing process. They reflect the proper application or guidance for applying generally accepted auditing standards (GAAS) to the audit cycles of non-public companies. Publicly held companies are subject to auditing guidelines provided by the Securities and Exchange Commission (SEC) and the Sarbanes-Oxley Act of 2002 (Wisegeeks, 2014). It was …show more content…

So the first question that should be asked is why should an audit be done in the first place? According to the Clarified auditing standards on the AccountingWEB website they have determined the following information as critical in defining what an audit is and why it’s important.

The purpose of an audit (purpose). To provide financial statement users with an opinion by the auditor on whether the statements are presented fairly, in all material respects, in a manner that conforms to an applicable financial reporting framework. It’s important the audit does provide the ultimate user with financial statements needed to understand where their company is going and how it can and will succeed.
Personal responsibilities of the auditor (responsibilities). These include competence and capabilities, compliance with appropriate ethical standards, and approaching the work with appropriate professional skepticism and judgment. The company needs to be assured that the auditor assigned to their case is responsible and knows how to do their

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