The System Used For Reporting Under Gaas Within The United...

The way in which audit reports have been documented and presented has slightly changed since the 1940’s whereby the use of guidelines as provided by GAAS (Generally Accepted Auditing Standards) in the documentation and reporting of the report is still in use. The system used for reporting under GAAS within the United States is the pass/ fail model which analysts believe to be a very useful tool for concise and clear assessment of a fair reporting of the audited financial statements of a company. The new set of rules by the PCAOB sets out to seek the presentation of additional information regarding the process of audit pertaining to each business by rolling out new audit standards. The new standards that require that a personal signature of the engagement partner be added to the final audit reports and the second rule requiring the disclosure of Critical Audit Matters (CAMs) together with other information that explicitly relate to each audit process. The effect of these two rules by the PCAOB will in effect mean that the scope towards transparency is widened and that the users of the audited information would easily rely on the information presented by the companies without any lingering questions as to the authenticity of the reports. Audit reporting and documentation provided by the previous standards required the auditor to communicate that the audit process could only offer a reasonable assurance to the users of the conformity with the Generally Accepted AuditingShow MoreRelatedImportance of Generally Accepted Auditing Standards (GAAS)4938 Words   |  20 PagesAccepted Auditing Standards (GAAS) Miriam Manjarres November 18, 2012 Abstract The Generally Accepted Auditing Standards are standards that were developed through the American Institute of Certified Public Accountants as a foundation in conducting an audit in its reasonable accuracy. There is a need for auditors to follow the standards provided to be able to render a report of the financial statements audited stating that it is free from any misstatement. GAAS are divided into three categoriesRead MoreSolution to Auditing and Assurance Service: 1,12,B, 329605 Words   |  119 Pagescan refer to Exhibit 1.2 and respond in terms of: (1) obtaining and evaluating evidence about assertions management makes about economic actions and events, (2) ascertaining the degree of correspondence between the assertions and the appropriate reporting framework, and (3) providing an audit report (opinion). Students can also respond more generally in terms of â€Å"lending credibility† to financial statements presented by management (attestation). 1.5 An attest engagement is: â€Å"An engagement in whichRead MoreAuo 1 Study Guide Essay12292 Words   |  50 PagesAuditing and Information Systems Additional Study Questions/ Study Guide 1. Accounting Information Systems Competency 302.1.1: Nature and Purpose The student understands the nature and purpose of information systems. * What is the difference between transaction processing systems, management information systems, and decision support systems? 2. Transaction processing systems - document financial activities 3. Management information systems - used to collect qualitativeRead MoreCase Study Essay2170 Words   |  9 PagesEnron Corporation began as a small natural gas distributor and, over the course of 15 years, grew to become the seventh largest company in the United States. Soon after the federal deregulation of natural gas pipelines in 1985, Enron was born by the merging of Houston Natural Gas and InterNorth, a Nebraska pipeline company. Initially, Enron was merely involved in the distribution of gas, but it later became a market maker in facilitating the buying and selling of futures of natural gas, electricityRead MoreAudit and Assurance Services3085 Words   |  12 PagesChanges in the method that organizations employ in conducting business also increase the danger of fraudulent financial reporting. Financial failures and high profile scandals within business environment between 2000 and 2002 have necessitated market regulators to call for scrutiny in the corporate financial re porting in the United States. The occurrence of fraudulent practices within business environment made the stakeholders to call for risk management, governance as well as increase in the scrutinyRead MoreWhat Does Forensic Mean?3765 Words   |  16 Pages1. What does forensic mean? From Latin forensis ‘in open court, public,’ - Relating to, used in, or appropriate for courts of law or for public discussion or argumentation. - Of, relating to, or used in debate or argument; rhetorical. - Relating to the use of science or technology in the investigation and establishment of facts or evidence in a court of law: a forensic laboratory. http://www.thefreedictionary.com/forensic 2. Define forensic accounting. Forensic accounting is a typeRead MoreAccounting Terminology Guide17204 Words   |  69 PagesO  |  P  |  Q  |  R  |  S  |  T  |  U  |  V  | W  |  Y  |  Z   The  New  York  State  Society  of  CPAs  (NYSSCPA)  General  Committee  on  Public  Relations  has   prepared  this  glossary  as  an  educational  tool  for  journalists  who  report  on  and  interpret  financial   information.   How  to  Use  this  Guide   To  jump  to  a  letter  in  the  alphabet,  click  the  letter  at  the  top.   When  you  see  Ã¢â‚¬Å"Top  of  Page†,  click  the  link   and  it  will  bring  you  here.   Capitalized  terms  that  appear  within  definitions  of  other  terms  are  also  defined  in  this  guideRead MoreFinancial Statement Frauds29904 Words   |  120 PagesAuditor’s Responsibili ty for Detecting Financial Statement Fraud - Tiina Intal and Linh Thuy Do Graduate Business School School of Economics and Commercial Law Gà ¶teborg University ISSN 1403-851X Printed by Elanders Novum Abstract Financial reporting frauds and earnings manipulation have attracted high profile attention recently. There have been several cases by businesses of what appears to be financial statement fraud, which have been undetected by the auditors. In this thesis, the main purposeRead MorePhar Mor Case8496 Words   |  34 Pagescontributing to an environment conducive to accounting fraud . Understand what factors may inappropriately influence the client-auditor relationship and auditor independence Understand auditor legal liability issues related to suits brought by plaintiffs under both statutory and COmmonlaw INTRODUCTION In December 1995, the flamboyant entrepreneur Michael Mickey Monus, formerly president and chief operating officer (COO) of the deep-discount retail chain PharMor, Inc., was sentenced to 19 years and sevenRead MoreFord and Toyota Case Study Essay3959 Words   |  16 Pagesengineered by Henry Ford. They are one of the world’s largest producers of cars and trucks. They and their subsidiaries also engage in other businesses, including financing vehicles. They have two operating sectors: automotive and financial services. Within these sectors, their business is divided into reportable segments based upon the organizational structure that they use to evaluate performance and make decisions on resource allocation, as well as availability and materiality of separate financial