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Auditing Theory Essay

685 words - 3 pages

Auditing Standards
Genaral
1. The auditor must maintain independence in mental attitude in all matters related to the audit.
2. The auditor must have adequate technical training & proficiency to perform the audit.
3. The auditor must exercise due professional care during the performance of the audit and the preparation of the report
Standards of Field Work.
1. The auditor must adequately plan the work and must properly supervise any assistants.
2. 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, ...view middle of the document...

In order to perform this Auditing Procedures in a proper way, Auditor must know the following ten Auditing Standards because it is really important that the Auditor must know and following the standards well before performing any of the procedures

Importance of the Auditing Standards

The term Generally Accepted Auditing Standards, often shortened to GAAS, refers to a set of ideas which serves as a framework for the various processes falling under the main activity, which is auditing. Since the reports produced after an audit may have a great impact on the future of a company, it is especially important that auditing processes are kept uniform and are conducted in a fair and systematic manner. The data and analysis must also be accurate, because any discrepancy between the report and the actual situation may lead to incorrect and potentially disastrous consequences.

The main importance of the generally accepted auditing standards is that the standards are used to determine...

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