Governmental auditing
Article Abstract:
The Government Accounting Office (GAO) issued a revision to its Government Auditing Standards, the Yellow Book, in 1988 that are effective as of 1 Jan 1989. The 1988 Yellow Book extensively revises the standards, which were last revised in 1981. The areas affected by the revisions include: quality control; continuing professional education; and errors, irregularities, and illegal acts. A new quality control standard requires auditors conducting government audits to use an appropriate internal quality control system and participate in an external control program. The 1988 Yellow Book lists specific education and training requirements to be met by all auditors involved in government audits and directs an auditor to design and implement procedures to provide a reasonable assurance of uncovering errors, irregularities, and illegal acts.
Publication Name: The Woman CPA
Subject: Women's issues/gender studies
ISSN: 0043-7271
Year: 1990
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The impact of the internal audit function on the auditor's consideration of the internal control structure
Article Abstract:
The requirements of internal auditors to examine clients' internal controls when developing and implementing an audit under Statement of Auditing Standard 55 are more extensive than under previous standards. The internal control of clients must be examined at the department level for objectivity, competence, and quality. A department's objectivity is demonstrated by its independence, professional autonomy, and reporting responsibilities. Signs of departmental competence include hiring practices, education and experience of staff, and participation in continuing education. The quality of departmental work performance can be graded by examining quality assurance programs, including review and supervision policies and procedures.
Publication Name: The Woman CPA
Subject: Women's issues/gender studies
ISSN: 0043-7271
Year: 1990
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Audit risk assessment
Article Abstract:
Statement on Auditing Standard (SAS) 47 identifies the elements of audit risk and provides a model for audit risk analysis. SASs 53 to 61 address the gap in the perceptions of auditors and clients regarding the assurance provided by an independent audit. SAS 55 in particular examines the internal control structure, and SAS 53 directs auditors to take steps to provide reasonable assurance of finding financial misstatements. The factors for auditors to consider when meeting the requirements of these standards include: examining risk factors in combination; being aware of the relationship between management attitude and audit risk; and recognizing that decreasing profits and regulation affect management attitudes.
Publication Name: The Woman CPA
Subject: Women's issues/gender studies
ISSN: 0043-7271
Year: 1990
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