New Audit Standards [Compatibility Mode]

Christian

Description

New Audit Standards: How Will They Impact the Audit Process?Presented byRobinson, Farmer, CCoxox Associates“The Commonwealth’s premier source of financial expertise since 1953.”www.rfca.com„„„„Presentation ObjectivesObjectivesDiscuss background and reasons for enacting selected new Statements on Auditing Standards (SAS’s).Review specific per-SAS requirements.Conveypy the impacts of the new requirements on localities.www.rfca.com„„„„„„„„„„„„„„„„Risk Assessment Standards (SAS 104-111) - OverviewThe AICPA’sAICPA’s AAuditinguditing StandardsStandards BoardBoard has issued eighteight Statements oonnAuditing Standards (SAS)(SAS)(SAS)(SAS) relating to the assessment of risk inininin an auditofof financial sstatements:tatements:SAS No.No. 104,104, Amendment toto Statement onon Auditing Standards NoNo. .1,1,Codification oof f AuditingAuditing Standards aandnd PProcroceduresedures (“DueProfessional Care inin the PerformancePerformance ooff Work”)SAS No.No. 105,105, Amendment ttoo StatementStatement on Auditing Standards NoNo..9955 ,,Generally Accepted Auditing StandardsStandardsSAS NoNo.. 106,106, Audit EEvidencvidenceeSAS NoNo.. 107, Audit RiskRisk andd Materialityyyy in ConductiConductin ng an AudituditSAS NoNo.. 108,108, Planning and SupervisionSupervisionSAS No.No.1109,09, Understanding tthehe EEntityntity and ItsIts Environment andAssessing the RisksRisks of Material MisstatementSAS No.... 110, Perrrrfffforming Audit ...

Informations

• Publié par: Inyo
• Nombre de lectures: 14
• Langue: English

Extrait

New Audit Standards: How Will They Impact the Audit

Presented by     “The Commonwealth’s premier source of financial expertise since 1953.”

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      selected new Statements on Auditing Standards (SAS’s). „ Review specific per-SAS requirements. „  uirements of the new re acts imConve the on localities.

 

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Risk Assessment Standards (SAS 104- 111) - Overview

TheAICPA’sAuditingStandardsBoardhasissuedeightStatementson

offinancialstatements: „ SASNo.104,AmendmenttoStatementonAuditingStandardsNo. 1,CodificationofAuditingStandardsandProcedures(“Due ProfessionalCareinthePerformanceof Work” „ SASNo.105,AmendmenttoStatementonAuditingStandardsNo.95, GenerallyAcceptedAuditingStandards „ SASNo.106,AuditEvidence „ „ SASNo.108,PlanningandSupervision „ SASNo.109,UnderstandingtheEntityandItsEnvironmentand AssessingtheRisksofMaterialMisstatement „ RisksandEvaluatingtheAuditEvidenceObtained „ SASNo.111,AmendmenttoStatementonAuditingStandardsNo.39, AuditSampling

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      believes these standards are significantly more strengthened and will lead to a more quality audit product.

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„  is to im rove the audit sOb ective ’ effectiveness by providing: „ A more detailed entity-wide understanding of processes an con ro s „ A more rigorous assessment of the risks of        in the financial statement „ A linkage between “assessed risks and the na ure, m ng, an ex en o e au procedures performed in response to those risks.

 

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     practice by requiring: „  ofmore detailed understandin its the entit processes, and controls „ Ability to default to maximum control risk is removed „ Improved linkage between entity risk and the resu ng au proce ures per orme .

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lication of the

„ Enhances the auditor’s a audit risk model: AR = [CR x IR] x DR [CR x IR] = RMM

AR = Audit Risk CR = Control Risk IR = Inherent Risk DR =Detection Risk RMM = risk of material misstatement

Source: AICPA Risk Assessment Standards Presentation

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  „ Assess internal control for strength and functionalit „ Assess whether or not these controls were in use „ Assess the risk of material misstatement at both the financial statement level and at the  .

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„ New Assertion Framework

Classes of Transactions – Occurrence

– Accuracy

– Cutoff – Classification

Account Balances – Existence

   obligations – Completeness

– Valuation and allocation

Presentation and Disclosures – Occurrence and Rights / obligations

– Classification and

– Accuracy and valuation

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Account level

 

 

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Further Audit Procedures (Tests o on ro s an u s an ve Tests)

    • • Enhanced requirement to link risks and audit procedures in response to those risks is improved. • s assessmen as a con nuous process.

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