Titleabc123 Version 1 Week One Self-Guided Quiz

Titleabc123 Version X1week One Self Guided Quizacc491 Version 71univ

The questions below generally follow the order of the topics as presented in the text in Chapters 1 and 2. However, you will need to read all chapters (1, 2, 25, 26) in order to get the complete picture of most of these topics as Chapters 25 and 26 and additional insight to topics found in Chapters 1 and 2 and contain original material addressed in later questions. Write a brief response, 30-90 words, for each question below.

Paper For Above instruction

Auditing is the systematic process of examining and evaluating an organization's financial statements and related operations to ensure accuracy, compliance with applicable standards, and reliability of financial reporting. It involves an independent assessment to provide credibility to financial data used by stakeholders. Evidence in auditing refers to the documentation and information collected during the audit process that supports the auditor's conclusions, making it a cornerstone for establishing the validity and reliability of audit findings. Independence is the state of being free from influence or bias, ensuring that auditors can make objective judgments; objectivity pertains to maintaining impartiality and fairness in all aspects of the audit process. The three phases of an audit—Planning, Fieldwork, and Reporting—entail specific activities: planning involves understanding the client's business, assessing risks, and setting audit procedures; fieldwork includes collecting evidence through testing and inspections; reporting synthesizes findings into an audit report. Assurance services provide an independent assessment of a subject, whereas attestation services involveasserting that a subject conforms to specific standards or criteria. Types of audits include operational audits (evaluate efficiency and effectiveness), compliance audits (assess adherence to laws and regulations), financial statement audits (verify financial data), and informational technology audits (review IT systems and controls). Auditors can be CPA firms (public), governmental entities like the GAO or IRS (focusing on public accountability or tax compliance), or internal auditors (work within the organization). CPA firms contribute to societal trust by providing independent assurance on financial information, facilitating investor confidence and economic stability. Sarbanes-Oxley Act (SOX) was enacted to enhance corporate transparency and accountability, with the SEC regulating public company disclosures and audit practices. The AICPA sets ethical standards and guidance for CPAs, while the PCAOB oversees the quality of public company audits; the IIA governs internal auditing standards. The 10 GAAS components include general standards, fieldwork standards, and reporting standards, overarching principles to ensure high-quality audits. SAS (Statements on Auditing Standards) are issued by the AICPA to provide guidance on audit procedures and standards. CPA firms are mandated to implement quality control systems to ensure the integrity and effectiveness of their audits, including peer reviews, which evaluate a firm's compliance with professional standards and are performed periodically. Governments often have different standards due to differing objectives—emphasizing accountability and public interest—necessitating tailored regulations for their audits.

References

• Arens, A. A., Elder, R. J., & Beasley, M. S. (2020). Auditing and Assurance Services (16th ed.). Pearson.
• Auditing Standards Board (ASB). (2023). Statements on Auditing Standards (SASs). American Institute of CPAs.
• Carcello, J. V., & Nagy, A. L. (2021). Audit Firm Quality Control and Peer Review. Journal of Accounting & Economics, 72(2-3), 101582.
• Public Company Accounting Oversight Board (PCAOB). (2023). Auditing Standards.
• Securities and Exchange Commission (SEC). (2023). Sarbanes-Oxley Act Overview. U.S. Securities and Exchange Commission.
• The Institute of Internal Auditors (IIA). (2022). International Standards for the Professional Practice of Internal Auditing.
• Whittington, O. R., & Pany, K. (2020). Principles of Auditing & Other Assurance Services (21st ed.). McGraw-Hill.
• Government Accountability Office (GAO). (2022). Generally Accepted Government Auditing Standards (GAGAS).
• International Federation of Accountants (IFAC). (2021). International Standard on Auditing (ISA) 300: Planning an Audit of Financial Statements.
• United States Congress. (2002). Sarbanes-Oxley Act of 2002.