The entity's transactions and the related assets, liabilities, and equity are within the direct knowledge and control of management. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. The auditor's responsibility is to express an opinion on the financial statements. 03 The financial statements are management's responsibility. 2 The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not material to the financial statements are detected. 1 Because of the nature of audit evidence and the characteristics of fraud, the auditor is able to obtain reasonable, but not absolute, assurance that material misstatements are detected.
#GENERALLY ACCEPTED AUDITING STANDARDS INDEPENDENCE FREE#
02 The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Distinction Between Responsibilities of Auditor and Management These standards require him to state whether, in his opinion, the financial statements are presented in conformity with generally accepted accounting principles and to identify those circumstances in which such principles have not been consistently observed in the preparation of the financial statements of the current period in relation to those of the preceding period.
In either case, he states whether his audit has been made in accordance with the standards of the PCAOB. The auditor's report is the medium through which he expresses his opinion or, if circumstances require, disclaims an opinion. 01 The objective of the ordinary audit of financial statements by the independent auditor is the expression of an opinion on the fairness with which they present, in all material respects, financial position, results of operations, and its cash flows in conformity with generally accepted accounting principles. 02 Distinction Between Responsibilities of Auditor and Management Small Business and Broker-Dealer ForumsĪmendments: Amending releases and related SEC approval orders Summary Table of Contents.
PCAOB International Institute on Audit Regulation.Conference on Auditing and Capital Markets.Information for Auditors of Broker-Dealers.The International Forum of Independent Audit Regulators and Other International Organizations.Board Determinations Under the Holding Foreign Companies Accountable Act.PCAOB Cooperative Arrangements with Non-U.S.Updated PCAOB Staff Considerations on Recommending the Identification of Issuers and/or Broker-Dealers in Settled Enforcement Orders.Inspections-Related Board Reports and Statements.
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