The Firm of Choice. 1 New Auditing Standards Maintaining the Integrity of the Independent Audit.
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Transcript of The Firm of Choice. 1 New Auditing Standards Maintaining the Integrity of the Independent Audit.
![Page 1: The Firm of Choice. 1 New Auditing Standards Maintaining the Integrity of the Independent Audit.](https://reader036.fdocuments.in/reader036/viewer/2022083008/56649e9d5503460f94b9e078/html5/thumbnails/1.jpg)
The Firm of Choice. 1
NewAuditing Standards
Maintaining the Integrity of the Independent Audit
![Page 2: The Firm of Choice. 1 New Auditing Standards Maintaining the Integrity of the Independent Audit.](https://reader036.fdocuments.in/reader036/viewer/2022083008/56649e9d5503460f94b9e078/html5/thumbnails/2.jpg)
The Firm of Choice. 2
Reason for New Standards
• Auditing profession continually reviews practices and makes necessary improvements
• Post Enron and Sarbanes-Oxley
• Higher expectations of auditors
• Need to maintain audit quality in changing business environment
![Page 3: The Firm of Choice. 1 New Auditing Standards Maintaining the Integrity of the Independent Audit.](https://reader036.fdocuments.in/reader036/viewer/2022083008/56649e9d5503460f94b9e078/html5/thumbnails/3.jpg)
The Firm of Choice. 3
Overview • Standards re-write many of the fundamental building
blocks of auditing
• Require more extensive and different types of procedures than performed in the past
• Effective for audits of financial statements
beginning after December 15, 2006
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The Firm of Choice. 4
The Basic Audit Process
• New process is designed to be more adaptable to individual client circumstances.
• Obtain thorough understanding of client, including internal control
• Use understanding to assess risk
• Use risk assessment to design and perform procedures
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The Firm of Choice. 5
Effect on Audits
• More work to form an understanding of the client
• More extensive procedures to evaluate internal control design
• Involve more experienced personnel to obtain required level of understanding
• Shift portions of the work to a period in advance of year-end
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The Firm of Choice. 6
Questions?