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Audit Models of the U.S Public Accounting | Assignment

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Added on  2020-04-01

Audit Models of the U.S Public Accounting | Assignment

   Added on 2020-04-01

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Audit Models of the U.S Public Accounting | Assignment_1
IntroductionThis assignment is about the recently changed audit models of the U.S public accountingoversight board. The changed model now requires the auditors to present the high risk area ofbusiness in the audit report itself. An auditor is a person, who inspects the accounts of thecompany or an organization and detects if there is any wrong entry of financial or non financialtransactions has been done or skipped purposely to bring the actual true financial condition orfinancial report of the company to the interested peoples[ CITATION Gle10 \l 1033 ]. An audit isdone by a certified accountant or an auditor, in this assignment we are going to discuss in detailthe need of auditing and the auditing models changed in the PCAOB.Key Changes to Audit Report with Focus on Similarities As Well As Any DifferencesThe international auditing and assurance standards board (IAASB) is an international auditingstandard body that is working internationally. This body of international auditing standards wasset in 1978 march, and it is working on stabilizing the global financial system, enhancing therole, relevance and quality of assurance and implementation of auditing standards[ CITATIONphi14 \l 1033 ]. The public company accounting board is similar to that of IAASB; however it is aprivate sector and a nonprofit corporation that works in keeping an eye on the work of the publiccompanies to protect the interest of the investors[ CITATION Har08 \l 1033 ]. Recently the PCAOBhas made some changes into the auditing report models, these changes suggested that theauditors have to disclose the areas of high audit risk to in the audit report. The recent changes ofthe PCAOB now require the auditor’s report to be more specific and more relevant and toprovide more additional information about the audit to the client. The newly developed standardnow requires the auditor to communicate the critical audit matters (CAM) for audits that areconducted under the standards of PCAOB. Critical audit matter (CAM) are the matters thatcomes out while conducting an audit and these matters are now according to the new changes arerequired to be communicated to the client. An auditor for determining the critical audit matterswill require working upon the audit risk assessment, unusual significant transactions etc. if incase there are no critical audit matters the auditor will prepare a disclosure stating that no criticalaudit matter occurred while conducting the audit[ CITATION Dav15 \l 1033 ]. Another change thathas been made by the public company accounting oversight board is that, the auditor now willhave to state that when and in which year the audit began and when it ending it comes under thetenure. Third major change made in by PCAOB is the independence of the auditor; this changemeans that the audit report will include a statement stating that the auditor must be independent.Another major change is the address; the auditor’s report will be addressed to the company’sshare holders and to the board of directors[ CITATION Dav17 \l 1033 ]. Now if we talk about the
Audit Models of the U.S Public Accounting | Assignment_2

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