PROPER FINANCIAL STATEMENTS: The reboot should state whether financial statements are presented ‘in conformity with generally accepted accounting principles.ĪPPLICATION OF ACCOUNTING PRINCIPLES: The report should state whether generally accepted accounting principles have been consistently applied in relation to the preceding period. The auditor should collect sufficient and reasonable evidence in order to discharge his duties. OBTAINING EVIDENTIAL MATTER: The audit work requires evidence to check the performance of the business. substantive procedures help him to test the system of internal control. He should prepare audit program to complete his work.ĮVALUATION OF INTERNAL CONTROL: The study and evaluation of internal control should be made. PROPER PLANNING: The audit work should be properly planned and any assistant properly supervised. ![]() He must use his abilities in audit as a man of ordinary prudence performs his duties. He is independent if he is not an employee and other persons do not influence him.ĭUE CARE: The auditor must exercise due professional care in performing an examination. INDEPENDENCE: The auditor must be independent in fact and appearance. ![]() A firm of chartered accountants provides technical training in the field of auditing. TECHNICAL TRAINING: The auditor must have adequate technical training and proficiency. See Also: How to Conduct an Audit of a Firm Generally Accepted Auditing Standards Hermanson says that auditing standards refer to measures of the quality of performance of the procedures used by the auditor during his or her examination. Millichamp auditing standards prescribe the basic principles and practices which members are expected to follow in the conduct of an audit. Meigs says that auditing standards are authoritative rules for measuring the quality of performance.Īccording to A. Cook says that the overall guidelines for auditing who are known as generally accepted auditing standards. Anyhow, with the passage of time further improvements will be made to meet the new challenges of auditing work. The Chartered Accountants have also framed rules at national level. The International Federation of Accountants issues international auditing guidelines. The association of professional accountants has framed rules for the guidance of their members. The introduction of the computer in the account, separation of management from ownership, the establishment of big companies has increased the responsibility of the auditors. See Also: What is the Role of an Auditor in an Organization The audit standards applied in the early period are not acceptable at present. In order to meet the business needs the professional accountants are busy in improving the rules of the business audit. The audit staff can follow the stated principles and practice in the conduct of an audit. Are you looking for auditing standards definition and what are the generally accepted auditing standards? You are on the right spot to know the answer of this question.Īuditing standards are quality of work that can be used to measure the performance of auditors.
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