Field Work Standards for Performance Audits— Reasonable Assurance, Significance, Audit Risk, and Planning, This section documents the auditing standards for performance audits related to planning the audit; supervising staff; obtaining sufficient, appropriate evidence; and preparing audit documentation..
Generally accepted auditing standards or GAAS are the minimum standards certified public accountants (CPAs) must follow when they perform audits.
Auditing standards have evolved over the last four decades to ensure consistency and uniformity in the performance of audits..
The International Standards on Auditing (ISA) is a set of globally acknowledged professional standards that prescribe guidelines to auditors for conducting audits on financial statements.
The ISA sets up principles and procedures that auditors must follow to maintain an audit's quality, consistency, and credibility..
For-profit entities — accounting standards are based on International Financial Reporting Standards (IFRS Standards).
PBEs — accounting standards are based primarily on International Public Sector Accounting Standards (IPSAS) for Tiers 1 and 2 and the XRB's Simple Format Reporting Requirements for Tiers 3 and 4..
The XRB standards state what and how entities must report.
These requirements are incorporated into the XRB's financial reporting strategy.
The following Acts set out which types of organisations must produce, obtain assurance, and publish financial statements..
The XRB came into existence on 1 July 2011 when it was reconstituted from the Accounting Standards Review Board (ASRB) following amendments to the Financial Reporting Act 1993..
SA 700 deals with the responsibility of the auditor in forming his/her opinion on financial statements.
This standard also deals with content and form of the auditor's report that is issued as an outcome of the audit of the financial statements..
The XRB standards state what and how entities must report.
These requirements are incorporated into the XRB's financial reporting strategy.
The following Acts set out which types of organisations must produce, obtain assurance, and publish financial statements..
Generally accepted auditing standards (GAAS) are a set of systematic guidelines used by auditors when conducting audits of companies' financial records.
GAAS helps to ensure the accuracy, consistency, and verifiability of auditors' actions and reports..
5, entitled “An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements” in May 2007.
This standard supersedes the previous standard, Auditing Standard No. 2, and is effective for all audits of internal controls for fiscal years ending on or after November 15, 2007..
Who sets the rules the auditors follow.
Requirements for audits of public companies are set by the Public Company Accounting Oversight Board.
Private company audit standards are defined by the Auditing Standards Board of the American Institute of CPAs..
Reporting: The structure of an auditor's report and sometimes the exact language they use is dictated by auditing standards.
The standards help make sure the auditor does not mislead the reader regarding what they did, and often more importantly – what they didn't do.
This would allow for investors to compare and contrast investments or investment opportunities without the need for consideration of differing accounting standards.
Auditors would also benefit for group or component engagements, where a subsidiary operates in IFRS whilst the parent entity operates using GAAP..
Audit and assurance standards provide minimum guidance for audit or assurance practitioners to help determine the extent of steps and procedures that should be applied to fulfil the objective of the audit or assurance engagement
They are the criteria or yardsticks against which the quality of audit or assurance results are evaluated
This includes professional and ethical standards for assurance practitioners
XRB Au1 is the overarching standard which gives effect to the framework
It identifies and codifies the auditing and assurance standards that must be applied for the different types of assurance engagements and related services
These current Review Standards issued by the XRB Board or the NZAuASB apply to all assurance practitioners adopting the XRB auditing & assurance standards
NOTE: The Explanatory Guides provide supplementary information only and have no legal status
