Acct 6371 Advanced Auditing Quiz 1 Module 1 Focus Notes

ACCT6371 Module 1 focus notesThe ten Generally Accepted Auditing Standards (GAAS) comprise the foundation of auditing and you must commit them to memory. Here is the mnemonic to help you remember the ten GAAS per Becker CPA review: TIP PIE ACDO1 Three general standards ( TIP ):T raningIndependenceP rofessional Care2 Three field work standards ( PIE ):P lanning and SupervisionInternal ControlE vidence3 Four reporting standards ( ACDO )A ccounting=GAAPC onsistencyD isclosureO pinionTopics frequently tested in CPA exam:1Independence: The auditor must be independent in fact and in appearance. Independence in fact relates to the mental attitude. Independence in appearance relates to their independence in the mind of the general public.2 Internal control3 EvidenceAudit Planning1 Engagement partner plans the audit and supervises assistant2 The auditor should obtain an understanding of the clients business and industry3Written audit strategy and audit plan should be drafted. Audit strategy sets the scope, timing, and direction of the audit and guides the development of the audit plan. The audit plan outlines the nature, extent, and timing (NET) of the procedures to be performed during the audit.4Multilocation, using internal auditors work, using specialists Key: CPA must decide, not others.Audit risk1Terms and Abbreviations AR Audit RiskThe risk that the