Q1
Assurance services are material services that
auditors can make before agreeing to audit different final statements. They are
representing professional services that can raise information quality for
decision makers. Attestation is a kind of assurance services. Assurance
services can be used for showing enhancement of information domain provided by
certified public accountants. The independence is a feature that is found in
auditor for such services' performing. I am responsible for making assessment
for that engagements of assurance pre to accepting decisions.
Attestation services are parts of the assurance
services. They are styles of assurance services as reports are made by the CPA
company related to the assertion reliabiltoy that another party is doing. These
services can be found by many types including audit related to financial
statements that are historical, attestation services in relation to IT and
others which a wide subject matter domain can do as well as the control that is
made over Financial Reporting.
Q2
Auditor independence is that independence which can
be performed by an auditor with no impact from other different parties in the
company and no control or interference is set by any part on it as these
parties can't exist at any of the audit financial interest. There are two types
of that independence which are independence in mental and independence in
appearance. In dependence of mental is that mind state when view provision is
allowed without any effects from anyone that may alter the judgment accuracy as
this makes individuals to have conduct with professional skepticism,
objectivity and integrity. There is a relation between independence in
appearance to avert realities as well as the conditions of others that could
have data that suspect compromising of the audit.
Independence has threats which are the affecting
conditions on independence. According to AICPA, seven styles are found of
threats which are advocacy, self-review, adverse interest, undue influence,
management participations and financial self-interest. Examples are making the
undue influence threat as a hazard that can affect the capability of an auditor
for creating judgments that are objectives and independent. The company may in
need for hiding that actual loss so as not to lead to investors' escape.
Q3
AICPA
auditing standards were applied by The
PCAOB in April 16, 2003, being its temporary criterions . Ad respect should be
followed by different auditors. They are adopted standards that are existing
within auditing process.
PCAOB
Auditing Standards are considered as
auditing standards that are generally accepted and classified into three
main categories; Standards of Fieldwork, Standards of Reporting and General
Standards ,
General
Standards
1.
The audit must be made through one
person or persons who maintain technical
training and proficiency for being an efficient auditor.
2.
There are some issues relevant to the assignment where the auditor should get
an mental attitude independence.
3. the auditors are in need for professional care during that
process of auditing and during preparing the auditor report.
Standards of Fieldwork
1.
Complete overseen should be done if the process is having suitability
coordinated. 2. Internal control should be realized and coordinated the audit
so as to is to specify checks' nature, extent and timing
3.
There should be suitable evidential issue for getting into making processes for
example, inspection, confirmations, observation and inquiries for giving a
rational and plausible basis that a
view point needs for considering the
financial statements under audit.
Standards
of Reporting
1.
The report should decide if the financial statements are prepared with high relation to generally accepted
accounting principles (GAAP).
2.
The report should decide the conditions that these principles that systems
couldn't observe in the current period related to the preceding period.
3.
They need to have records' disclosures relevant to financial statements that
are enough or if they are either contained within the report.
4.The
report must include opinion showing that consider the financial statements, or
that can be comprehensive, or that can assure the impact which is not shown by
the view.
In
case that it is difficult to show comprehensive opinion, it is necessary to
determine the causes then. In all cases,
if auditor's name is connected to financial statements, there
should be showing of the obvious-cut significance related to feature of the
auditor's process , if any,
accountability rate should be taken by the auditor.
The
ten generally accepted auditing standards are for sure, having a great part for
auditors as they can guide auditors towards the means of auditing process
making on bases that are scientific. This is because the ten standards are able
to present a summary for auditors' accountabilities that other standards of
PCAOB can present later. Fieldwork three standards can get close to audit organization
and then collect evidence that is useful for making audits able to get
financial statements' view.
Q4
There
is no doubt that the auditors bear the responsibility of material misstatement
detection within the auditing process for the financial statements that are
consolidated by the company through making the statements' values matched
within the statements and then to make definition for the differences because
this can make them able to recognize the different existed frauds and errors.
They also have the responsibility of achieving communication on all its levels
within teams through the engagement process. The auditors are also in
responsibility for using the processional skepticism they maintain for making
the assessment that is accurate and effective on the evidence of the audit
during audit process as this can help in making the report via opinion
declaring and then to make the decisions related to financial statements to
suggest they have errors or fraud material misstatements. Based on that assumption,
auditors are detectors for the material misstatements which are made by
managers in Toshiba as they could make changes for the statements' values for
purposes of stakeholders' delude as they achieved the goals and the profits
that were desired. Auditors' role here can be an informative role as they give
information about the material misstatements in relation to errors or fraud in
the reports of the auditors, financial statements' presentation by Toshiba were
not to be presented fairly in the different aspect.
Q5
i.
Users or stakeholders of the company's financial
statement who may include the suppliers, clients, investors, employees, the
public or the government can ask for external organization independent report
that is relevant to material misstatements in the firm so as to let them be
able to make the right decisions in future time. They need to have exact data
about all the issues relevant to the decisions related to the real financial
situation of the company and that should be given to them as in accurate values
for helping them make clear decisions such as the investors for example, and
here auditors are responsible for issuing the reports and all Toshiba material
misstatements in the financial statements of the company and not to present all
values as here investors can be careful in taking steps and decisions after
their assessments of the company's statements. Audits can give the stakeholders
accurate information about the factual financial position of the company and
this will help stakeholders have the optimal decisions according to that
information.
ii.
Professional skepticism can work as having a
material role in audit, this can also build an essential part of the auditor's
skill group. It can make the professional judgment an easy process and in
particular, the decisions related to the course of action, nature and timing of
the decisions related to the audit process as this can reduce the hazard to an
accepted level and can help in determination of the needed audit evidence or to
tell if there should be more requirements to be fulfilled for assurance
criterions including the administration judgments' assessment and the financial
reporting system of the organization based on the yearly audit system and the
conclusions design with connection to the maintained audit evidence.
Professional skepticism usage can help the audit
efficacy and reduce potential of choosing audit that is not suitable or
effective or even to misuse an audit that is suitable as a procedure or have
misunderstanding for the outcomes and results of the audit.
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