审计英语课件第二章

Chapter2AuditingStandards

2.1GAAS(GenerallyAcceptedAuditingStandards)2.2QualityControl2.3ChinaStandardsonAuditing,Review,OtherAssurance,RelatedServicesandQualityControlChapter2AuditingStandards1LearningObjectives

Afterstudyingthischapter,youshouldbeableto1.UnderstandtenGenerallyAcceptedAuditingStandards.2.Comprehenddefinitionofanassuranceengagement.3.Distinguishassertion-basedengagementsanddirectreportingengagements.4.Learntheelementsofanassuranceengagement.5.Distinguishreasonableassuranceandlimitedassurance.6.Learnelementsofqualitycontrol.LearningObjectivesAfterstud2Standardsareestablishedtomeasurethequalityofperformanceofindividualsandorganizations.StandardsrelatingtotheaccountingprofessionconcernthemselveswithCPAprofessionalqualities,withthejudgmentexercisedbyCPAsintheperformanceoftheirprofessionalengagements,andwithaCPAfirm’squalitycontrol.Standardsareestablishedtom32.1GAAS(GenerallyAcceptedAuditingStandards)2.1.1TenGenerallyAcceptedAuditingStandards2.1.2StatementsonauditingStandards2.1.3InternationalStandardsonAuditing2.1GAAS(GenerallyAcceptedA4Glossary

GAAS(GenerallyAcceptedAuditingStandards)一般公认审计准则generalstandards一般准则standardsoffieldwork现场工作准则standardsofreporting报告准则dueprofessionalcare合理的职业谨慎statementsonauditingstandards审计准则说明书InternationalStandardsonAuditing国际审计准则InternationalAuditingandAssuranceStandardsBoard(IAASB)国际审计与鉴证准则理事会InternationalFederationofAccountants(IFAC)国际会计师联合会

GlossaryGAAS(GenerallyAccep5Auditingstandardsaregeneralguidelinestoaidauditorsinfulfillingtheirprofessionalresponsibilitiesintheauditofhistoricalfinancialstatements.Theseincludeconsiderationofprofessionalqualitiessuchascompetenceandindependence，reportingrequirements，andevidence.Auditingstandardsaregeneral62.1.1TenGenerallyAcceptedAuditingStandards

GENERALSTANDARDS

STANDARDSOFFIELDWORK

STANDARDSOFREPORTING

2.1.1TenGenerallyAcceptedA7DevelopedbytheAICPAin1947,10generallyacceptedauditingstandards(GAAS)representthebasicframeworkofauthoritativeauditingguidelinesforprofessionalaccountants.Therearethreecategoriesforthe10generallyacceptedauditingstandards;theyaregeneralstandards,standardsoffieldwork，andreportingstandards.DevelopedbytheAICPAin19478GENERALSTANDARDSThegeneralstandardsstresstheimportantpersonalqualitiesthattheauditorshouldpossess.GENERALSTANDARDSThegenerals91.Theauditistobeperformedbyapersonorpersonshavingadequatetechnicaltrainingandproficiencyasanauditor.2.Inallmattersrelatingtotheassignment,anindependenceinmentalattitudeistobemaintainedbytheauditororauditors.3.Dueprofessionalcareistobeexercisedintheplanningandperformanceoftheauditandthepreparationofthereport.1.Theauditistobeperforme10AdequateTechnicalTrainingandProficiencyThefirstgeneralstandardisnormallyinterpretedasrequiringtheauditortohaveformaleducationinauditingandaccounting,adequatepracticalexperiencefortheworkbeingperformed,andcontinuingprofessionaleducation.AdequateTechnicalTrainingan11IndependenceinMentalAttitude

Asweallknowindependenceisveryimportanttoauditingprofession,soCPAfirmsarerequiredtofollowseveralpracticestoincreasethelikelihoodofindependenceofallpersonnel.Forexample,eachpartnerandemployeemustansweran“independencequestionnaire”annually,dealingwithsuchthingsasstockownershipandmembershiponboardofdirectors.IndependenceinMentalAttitud12DueProfessionalCare

Duecareintheperformanceofallaspectsofauditingmeansthattheauditorhasaprofessionalresponsibilityforfulfillinghisdutiesdiligentlyandcarefully.Asanillustration,duecareincludesconsiderationofthecompletenessoftheworkingpapers,thesufficiencyoftheauditevidence，andtheappropriatenessoftheauditreport.Asaprofessional,theauditormustavoidnegligenceandbadfaith,buttheauditorisnotexpectedtomakeperfectjudgmentsineveryinstance.DueProfessionalCareDuecare13STANDARDSOFFIELDWORK

Thestandardsoffieldworkconcernevidenceaccumulationandotheractivitiesduringtheactualconductoftheaudit.STANDARDSOFFIELDWORKThest141.Theworkistobeadequatelyplannedandassistants,ifany,aretobeproperlysupervised.2.Asufficientunderstandingofinternalcontrolistobeobtainedtoplantheauditandtodeterminethenature,timing,andextentofteststobeperformed.3.Sufficientcompetentevidentialmatteristobeobtainedthroughinspection,observation,inquiries,andconfirmationstoaffordareasonablebasisforanopinionregardingthefinancialstatementsunderaudit.1.Theworkistobeadequatel15AdequatePlanningandSupervision

Thefirststandarddealswithascertainingthattheengagementissufficientlyplannedtoensureanadequateauditandpropersupervisionofassistants.Supervisionisessentialinauditingbecauseaconsiderableportionofthefieldworkisdonebylessexperiencedstaffmembers.AdequatePlanningandSupervis16UnderstandtheClient'sInternalControl

Oneofthemostwidelyacceptedconceptsinthetheoryandpracticeofauditingistheimportanceoftheclient'ssystemofinternalcontroltogeneratereliablefinancialinformation.Iftheauditorisconvincedthattheclienthasanexcellentsystemofinternalcontrol,onethatincludesadequateinternalcontrolsforprovidingreliabledataandforsafeguardingassetsandrecords，theamountofauditevidencetobeaccumulatedcanbesignificantlylessthanwhencontrolsarenotadequate.Insomeinstance，internalcontrolmaybesoinadequateastoprecludeconductinganeffectiveaudit.UnderstandtheClient'sIntern17SufficientCompetentEvidence

Thedecisionsabouthowmuchandwhattypesofevidencetoaccumulateforagivensetofcircumstancesareonesrequiringprofessionaljudgment.SufficientCompetentEvidence18STANDARDSOFREPORTING

1.Thereportshallstatewhetherthefinancialstatementsarepresentedinaccordancewithgenerallyacceptedaccountingprinciples.2.Thereportshallidentifythosecircumstancesinwhichsuchprincipleshavenotbeenconsistentlyobservedinthecurrentperiodinrelationtotheprecedingperiod.3.Informativedisclosuresinthefinancialstatementsaretoberegardedasreasonablyadequateunlessotherwisestatedinthereport.4.Thereportshalleithercontainanexpressionofopinionregardingthefinancialstatements,takenasawhole,oranassertiontotheeffectthatanopinioncannotbeexpressed,thereasonsthereforeshouldbestated.Inallcaseswhereanauditors'nameisassociatedwithfinancialstatements,thereportshouldcontainaclear-cutindicationofthecharacteroftheauditors'work,ifany,andthedegreeofresponsibilitytheauditoristaking.STANDARDSOFREPORTING1.The19Thefourreportingstandardsrequiretheauditortoprepareareportonthefinancialstatementstakenasawhole，includinginformativedisclosures.Thereportingstandardsrequirethatthereportstatewhetherthestatementsarepresentedinaccordancewithgenerallyacceptedaccountingprinciplesandalsoidentifyanycircumstancesinwhichgenerallyacceptedaccountingprincipleshavenotbeenconsistentlyappliedinthecurrentyearcomparedwiththepreviousone.Thefourreportingstandardsr202.1.2StatementsonauditingStandards

The10generallyacceptedauditingstandardsaretoogeneraltoprovidemeaningfulguidancetoauditors.MorespecificguidancecanbefoundintheStatementsonAuditingStandards.SASsinterpretthe10generallyacceptedauditingstandardswhicharethemostauthoritativereferencesavailabletoauditors.2.1.2Statementsonauditing212.1.3InternationalStandardsonAuditing

Duetotheglobalizingofbusinessandcapitalmarkets，thereisastronginterestandtrendtowardsdevelopinguniformaccountingandauditingstandardsthroughouttheworld.Therefore,representativesfromdifferentcountriesareworkingtogetheronstandards-settingprojectstocoordinatenewinternationalauditingstandards.2.1.3InternationalStandard22InternationalStandardsonAuditing(ISAs)areissuedbytheInternationalAuditingandAssuranceStandardsBoard(IAASB)ofInternationalFederationofAccountants(IFAC).TheIFACistheworldwideorganizationfortheaccountancyprofession.Foundedin1977,itsmissionistoservethepublicinterest.IFACwillcontinuetostrengthentheworldwideaccountancyprofessionandcontributetothedevelopmentofstronginternationaleconomiesbyestablishingandpromotingadherencetohigh-qualityprofessionalstandards,furtheringtheinternationalconvergenceofsuchstandardsandspeakingoutonpublicinterestissueswheretheprofession'sexpertiseismostrelevant.InternationalStandardsonAud23AndtheIAASBworkstoimprovetheuniformityofauditingpracticesandrelatedservicesthroughouttheworldbyissuingpronouncementsonavarietyofauditandattestfunctionsandpromotingtheiracceptanceworldwide.AndtheIAASBworkstoimprove242.2QualityControl2.2.1ElementsofQualityControl2.2.2PeerReview2.2QualityControl2.2.1Eleme25Glossaryqualitycontrol质量控制peerreview同业互查

Glossaryqualitycontrol质量控制26TheCPAfirmsshouldestablishasystemofqualitycontroldesignedtoprovideitwithreasonableassurancethatafirmanditspersonnelcomplywithprofessionalstandardsandregulatoryandlegalrequirements，andthatreportsissuedbythefirmorengagementpartnersareappropriateinthecircumstances.TheCPAfirmsshouldestablish272.2.1ElementsofQualityControlLeadershipResponsibilitiesforQualitywithintheFirms

EthicalRequirements

AcceptanceandContinuanceofClientRelationshipsandSpecificEngagements

HumanResources

EngagementPerformance

Monitoring

2.2.1ElementsofQualityCont28LeadershipResponsibilitiesforQualitywithintheFirms

Thefirmsshouldestablishpoliciesandproceduresdesignedtopromoteaninternalculturebasedontherecognitionthatqualityisessentialinperformingengagements.Suchpoliciesandproceduresshouldrequirethefirm'schiefexecutiveofficerormanagingboardofpartnerstoassumeultimateresponsibilityforthefirm'ssystemofqualitycontrol.Anypersonorpersonsassignedoperationalresponsibilityforthefirm'squalitycontrolsystembythefirm'schiefexecutiveofficerormanagingboardofpartnersshouldhavesufficientandappropriateexperienceandability,andthenecessaryauthority,toassumethatresponsibility.LeadershipResponsibilitiesfo29EthicalRequirements

Thefirmshouldestablishpoliciesandproceduresdesignedtoprovideitwithreasonableassurancethatthefirmanditspersonnelcomplywithrelevantethicalrequirements.EthicalRequirementsThefirm30AcceptanceandContinuanceofClientRelationshipsandSpecificEngagements

Thefirmshouldestablishpoliciesandproceduresdesignedtodecidingwhethertoacceptorcontinueaclientrelationship.Thesepoliciesandproceduresshouldminimizetheriskofassociatingwithaclientwhosemanagementlacksintegrity.Thefirmshouldalsoonlyundertakeengagementsthatcanbecompletedwithprofessionalcompetence.Forexample,aclientevaluationform,dealingwithsuchmattersaspredecessorauditorcommentsandevaluationofmanagement，mustbepreparedforeverynewclientbeforeacceptance.AcceptanceandContinuanceof31HumanResources

Thefirmshouldestablishpoliciesandproceduresdesignedtoprovideitwithreasonableassurancethatithassufficientpersonnelwiththecapabilities,competence,andcommitmenttoethicalprinciplesnecessarytoperformitsengagementsinaccordancewithprofessionalstandardsandregulatoryandlegalrequirements,andtoenablethefirmorengagementpartnerstoissuereportsthatareappropriateinthecircumstances.Suchpoliciesandproceduresaddressthefollowingpersonnelissues,suchasrecruitment,performanceevaluation,capabilities,competence,careerdevelopment，promotion,compensation,andtheestimationofpersonnelneeds.HumanResourcesThefirmshoul32EngagementPerformance

Thefirmshouldestablishpoliciesandproceduresdesignedtoprovideitwithreasonableassurancethatengagementsareperformedinaccordancewithprofessionalstandardsandregulatoryandlegalrequirements,andthatthefirmortheengagementpartnerissuereportsthatareappropriateinthecircumstances.Forexample,anengagementqualitycontrolreviewthatprovidesanobjectiveevaluationofthesignificantjudgmentsmadebytheengagementteamandtheconclusionsreachedinformulatingthereportshouldbeperformedforallauditsoffinancialstatementsoflistedentities.

EngagementPerformanceThefir33Monitoring

Thefirmshouldestablishpoliciesandproceduresdesignedtoprovideitwithreasonableassurancethatthepoliciesandproceduresrelatingtothesystemofqualitycontrolarerelevant,adequate,operatingeffectivelyandcompliedwithinpractice.Suchpoliciesandproceduresshouldincludeanongoingconsiderationandevaluationofthefirm'ssystemofqualitycontrol,includingaperiodicinspectionofaselectionofcompletedengagements.MonitoringThefirmshouldest342.2.2PeerReview

PeerreviewisthereviewbyotherCPAfirmsofaCPAfirm'scompliancewithitsqualitycontrolsystem.ThepurposeofapeerreviewistodetermineandreportwhethertheCPAfirmbeingreviewedhasdevelopedadequatepoliciesandproceduresforthesixelementsofqualitycontrolandfollowstheminpractice.2.2.2PeerReviewPeerrevie35Peerreviewscanbebeneficialtotheprofessionandindividualfirms.Byhelpingfirmsmeetsqualitycontrolstandards,theprofessiongainsfromimprovedpractitionerperformanceandhigh-qualityaudits.Afirmhavingapeerreviewcanalsogainifitimprovesthefirm’spracticeandtherebyenhancesitsreputationandreducesthelikelihoodoflawsuits.Peerreviewscanbebeneficial362.3ChinaStandardsonAuditing,Review,OtherAssurance,RelatedServicesandQualityControl2.3.1ChinaGeneralStandardonAssuranceEngagements2.3.2ReviewEngagements2.3.3QualityControl2.3ChinaStandardsonAuditin37Glossarycodeofethicsforprofessionalaccountants职业会计师道德规范standardsonqualitycontrol质量控制准则standardsonassuranceengagements鉴证业务准则standardsonauditing审计准则standardsonreview审阅准则relatedservices相关服务agreed-uponprocedures商定程序compilation代编subjectmatterinformation鉴证对象信息

Glossarycodeofethicsforpro38Glossaryassertion-basedengagements基于责任方认定的业务directreportingengagements直接报告业务aresponsibleparty责任方intendedusers预期使用者reasonableassurance合理保证limitedassurance有限保证

Glossaryassertion-basedengage39InChina,CICPAsetsprofessionalrequirementsforCPAs,andpublishesthestandardsforauditing.In2006,CICPAcancelledtheindependentauditingstandardsandissuedtheassurancestandards.AlltheCPAsinChinamustobeyassurancestandardswhentheyimplementauditorotherassuranceservices.Theassurancestandardsincludegeneralassurancestandardsandassurancestandardsofprofessionalwork,andassurancestandardsofprofessionalworkhavethreecomponents,andtheyareauditingstandards,reviewstandards,otherassurancestandards.InChina,CICPAsetsprofessio402.3.1ChinaGeneralStandardonAssuranceEngagements

DefinitionofanAssuranceEngagement

Assertion-basedEngagementsandDirectReportingEngagements

ElementsofanAssuranceEngagement

2.3.1ChinaGeneralStandardo4DefinitionofanAssuranceEngagement“Assuranceengagement”meansanengagementinwhichapractitionerexpressesaconclusiononasubjectmatterinformationdesignedtoenhancethedegreeofconfidenceoftheintendedusersotherthantheresponsiblepartyaboutthesubjectmatterinformation.DefinitionofanAssur42Subjectmatterinformation“Subjectmatterinformation”istheoutcomeoftheevaluationandmeasurementofasubjectmatteragainstcriteria,suchastheinformationabouttherecognition,measurement,presentationanddisclosurerepresentedinthefinancialstatements(subjectmatterinformation)resultedfromapplyingAccountingStandardsforBusinessEnterprises(criteria)forrecognition,measurement,presentationanddisclosure,toanentity’sfinancialposition,financialperformanceandcashflows(subjectmatter).Subjectmatterinformation“Sub43subjectmatterAsubjectmatterofanassuranceisthetopicaboutwhichtheassuranceisconducted.subjectmatterAsubjectmatter4Assertion-basedEngagementsandDirectReportingEngagements

Assuranceengagementscanbedividedintoassertion-basedengagementsanddirectreportingengagements.Assertion-basedEngage45assertion-basedengagementsInassertion-basedengagements,theevaluationormeasurementofthesubjectmatterisperformedbytheresponsibleparty,andthesubjectmatterinformationisintheformofanassertionbytheresponsiblepartythatismadeavailabletotheintendedusers.Forexample,inauditoffinancialstatements,thefinancialstatements(subjectmatterinformation)whichresultfromtherecognition,measurement,presentationanddisclosure(evaluationormeasurement)bymanagement(responsibleparty),toanentity’sfinancialposition,financialperformanceandcashflows(subjectmatter)areassertionsoftheresponsibleparty.Thepractitionerissuesanauditor’sreportregardingthefinancialstatementsthatareavailabletotheintendedusers.Theseengagementsarecalled“assertion-basedengagements”.assertion-basedengagementsIn46directreportingengagementsIndirectreportingengagements,thepractitionereitherdirectlyperformstheevaluationormeasurementofthesubjectmatter,orobtainsarepresentationfromtheresponsiblepartythathasperformedtheevaluationormeasurementthatisnotavailabletotheintendedusers.Thesubjectmatterinformationisprovidedtotheintendedusersintheassurancereport.Forexample,inanassuranceengagementregardinginternalcontrol,thepractitionermaynotbeabletoobtaintheevaluationreport(assertionsoftheresponsibleparty)ontheeffectivenessofinternalcontrolfrommanagement(responsibleparty),orthereportisnotavailabletotheintendedusersalthoughthepractitionerisabletoobtainit.Thepractitionerissuesanassurancereportbydirectlyevaluatingtheeffectivenessofinternalcontrol(subjectmatter).Theinformationabouttheeffectivenessofinternalcontrol(subjectmatterinformation)isonlyavailabletotheintendedusersintheassurancereport.Theseengagementsarecalled“directreportingengagements”.

directreportingengagementsIn4ElementsofanAssuranceEngagement

athreepartyrelationshipasubjectmattercriteriaevidenceanassurancereportElementsofanAssuran48AthreepartyrelationshipAssuranceengagementsinvolvethreeseparateparties:apractitioner,aresponsiblepartyandintendedusers.AthreepartyrelationshipAssu49Theresponsiblepartyistheorganizationorperson(s)who:Inadirectreportingengagement,isresponsibleforthesubjectmatter;orInanassertion-basedengagement,isresponsibleforthesubjectmatterinformation,andmayberesponsibleforthesubjectmatter.

Theresponsiblepartyistheo50Theintendedusersaretheorganizationorperson(s)forwhomthepractitionerpreparestheassurancereport.Theintendedusersaretheorg51Subjectmatter

Thesubjectmatterandsubjectmatterinformationofanassuranceengagementcantakemanyforms,suchas:Financialperformanceorconditions(forexample,historicalorprospectivefinancialposition,financialperformanceandcashflows)forwhichthesubjectmatterinformationwouldbethefinancialstatements.Non-financialperformanceorconditions(forexample,performanceofanentity)forwhichthesubjectmatterinformationmaybekeyindicatorsofefficiencyoreffectiveness.SubjectmatterThesubjectmat52Physicalcharacteristics(forexample,capacityofafacility)forwhichthesubjectmatterinformationmaybespecificationsdocument.Systemsandprocesses(forexample,anentity’sinternalcontrolorITsystem)forwhichthesubjectmatterinformationmaybeanassertionabouteffectiveness.Behavior(forexample,compliancewithregulation)forwhichthesubjectmatterinformationmaybeastatementofcomplianceorastatementofeffectiveness.Physicalcharacteristics(for53Criteria

Criteriaarethebenchmarksusedtoevaluateormeasurethesubjectmatterincluding,whererelevant,benchmarksforpresentationanddisclosure.Criteriacanbeformal,forexampleinthepreparationoffinancialstatements,thecriteriamaybeAccountingStandardsforBusinessEnterprises,andcanbeinformal,forexampleentity’sinternallydevelopedcodeofconductoranagreedlevelofperformance.CriteriaCriteriaarethebenc54Evidence

Thepractitionershouldplanandperformanassuranceengagementwithanattitudeofprofessionalskepticismandobtainsufficientappropriateevidenceaboutwhetherthesubjectmatterinformationisfreefrommaterialmisstatement.EvidenceThepractitionershou55AssuranceReport

Thepractitionershouldprovideawrittenreportcontainingaconclusionthatconveystheassuranceobtainedaboutthesubjectmatterinformation.

AssuranceReportThepractitio562.3.2ReviewEngagements

Theobjectiveofareviewoffinancialstatementsistoenableanauditortostatewhether,onthebasisofreviewproceduresperformed,anythinghascometohis/herattentionthatcauseshim/hertobelievethatthefinancialstatementsarenotpreparedinaccordancewiththeapplicableaccountingstandards,anddonotpresentfairly,inallmaterialrespects,thefinancialposition,financialperformanceandcashflowsoftheentitywhosefinancialstatementsarebeingreviewed(“theentity”).2.3.2ReviewEngagementsThe57Wherereviewsoffinancialstatementsdiffermostfromafinancialstatementauditisinthelimitedproceduresperformed(limitedininquiryofmanagementandanalyticalprocedures)andthereviewreport.Thereviewreportshouldcontainaclearwrittenexpressionofnegativeassurance.Theauditorshouldassesswhetheranythinghascometotheauditor’sattentionbasedonthereviewthatcausestheauditortobelievethefinancialstatementsdonotgiveatrueandfairview(or‘arenotpresentedfairly,inallmaterialrespects’)inaccordancewiththeidentifiedfinancialreportingframework.Lessevidence,higherassurancerisk,andlowercredibilityWherereviewsoffinancialsta58Reasonableassurance(audits)vs.limitedassurance(reviews)

Reasonableassurance(audits)592.3.3QualityControl

PurposesofQualityControl

ElementsofQualityControl

2.3.3QualityControlPurpose60PurposesofqualitycontrolTheauditfirmshouldestablishasystemofqualitycontroldesignedtoprovideitwithreasonableassurancethatThefirmanditspersonnelcomplywithprofessionalstandardsandregulatoryandlegalrequirements,andthatReportsissuedbythefirmorengagementpartnersareappropriateinthecircumstances.PurposesofqualitycontrolThe61ElementsofQualityControl

Theaccountingfirm’ssystemofqualitycontrolshouldincludepoliciesandproceduresaddressingeachofthefollowingelements:Leadershipresponsibilitiesforqualitywithintheaccountingfirm;Ethicalrequirements;ElementsofQualityControlTh62Acceptanceandcontinuanceofclientrelationshipsandspecificengagement;HR;Engagementperformance;Engagementdocumentation;Monitoring.Acceptanceandcontinuanceof63Choices

1.Whichofthefollowingbestdescribewhatismeantbygenerallyacceptedauditingstandards?a.Actstobeperformedbytheauditor.b.Measuresofthequalityoftheauditor'sperformance.c.Procedurestobeusedtogatherevidencetosupportfinancialstatementsd.Auditobjectivesgenerallydeterminedonauditengagements.Choices1.Whichofthefollow642.Thefirstgeneralstandard，whichstatesinpartthattheauditistobeperformedbyapersonorpersonshavingadequatetechniquetraining，ficiencyinbusinessandfinancialmatters.d.knowledgeintheareasoffinancialaccounting.2.Thefirstgeneralstandard，653.Whatisthegeneralcharacterofthethreegenerallyacceptedauditingstandardsclassifiedasstandardsoffieldwork？a.Thecompetence，independence，andprofessionalcareofpersonsperformingtheaudit.b.Criteriaforthecontentoftheauditor'sreportonfinancialstatementsandrelatedfootnotesdisclosures.c.Thecriteriaofauditplanningandevidencegathering.d.Theneedtomaintainindependenceinallmatterspertainingtotheaudit.3.Whatisthegeneralcharact664.ACPAfirmisreasonablyassuredofmeetingitsresponsibilitiestoprovideservicesthatconformtoprofessionalstandardsbya.adheringtogenerallyacceptedauditingstandards.b.havinganappropriatesystemofqualitycontrol.c.joiningprofessionalsocietiesthatenforceethicalconduct.d.maintaininganattitudeofindependenceinitsengagements.4.ACPAfirmisreasonablyas67Chapter2AuditingStandards

2.1GAAS(GenerallyAcceptedAuditingStandards)2.2QualityControl2.3ChinaStandardsonAuditing,Review,OtherAssurance,RelatedServicesandQualityControlChapter2AuditingStandards68LearningObjectives

Afterstudyingthischapter,youshouldbeableto1.UnderstandtenGenerallyAcceptedAuditingStandards.2.Comprehenddefinitionofanassuranceengagement.3.Distinguishassertion-basedengagementsanddirectreportingengagements.4.Learntheelementsofanassuranceengagement.5.Distinguishreasonableassuranceandlimitedassurance.6.Learnelementsofqualitycontrol.LearningObjectivesAfterstud69Standardsareestablishedtomeasurethequalityofperformanceofindividualsandorganizations.