1.

Introduction and Professional Responsibilities

INTRODUCTION

Audit Attestation Review and Compilation

During engagement with Clarified Statements on Auditing Statements on Standards for Statements on Standards for
nonpublic company, accountant is Standards (SASs) issued by Attestation Engagements Accounting and Review Services
subject to: (SSAEs) issued by (SSARSs) issued by

AICPA Auditing Standards Board. AICPA Auditing Standards Board. AICPA Accounting and Review
Services Committee.

All statements are recorded in the AICPA Professional Standards. SAS sections have identifier AU-C.
SSAE sections have identifier AT-C. SSARS sections have identifier AR-C.

Attestation Audit, review or agreed-upon procedures engagement to report about whether a subject matter or assertion is in conformity with selected
criteria.

Audit Form of attestation in which practitioner obtains reasonable assurance that subject matter is in conformity with applicable financial reporting
framework, where subject matter is a historical financial statement(s).
Objective is to determine if financial statements (FS) are presented fairly.
Determination is based on auditor obtaining reasonable assurance that FS are free from material misstatement, whether due to fraud or error.
Reasonable assurance High level of assurance, but not absolute.
Materiality Total misstatement large enough to influence economic decisions of users on the basis of FS.

Auditor responsibility
Auditor always has general responsibility to conduct audit in accordance with Generally Accepted Auditing Standards. GAAS are made of the
above Clarified Statements on Auditing Standards and recorded in AICPA Professional Standards.

Client responsibilities
To prepare and fairly present FS in accordance with the applicable financial reporting framework.
To maintain internal controls for FS preparation.
To provide the auditor with:
All information, of which management is aware, that is relevant to FS preparation.
Other information at request of auditor.
Unrestricted access to personnel to obtain audit evidence.

Audit for public company Sarbanes-Oxley Act (SOX) of 2002 established the Public Company Accounting Oversight Board (PCAOB). To conduct an
audit of a public company, SOX requires auditor to register with the PCAOB.

During audit with public company, Auditing Standards (AS) issued

accountant is subject to: by

PCAOB with the approval of SEC.

General standards

Adequate technical training, proficiency.

Independence.
Due professional care.

Standards of fieldwork

Adequate planning and supervision.

Sufficient evidence to give reasonable basis for conclusion.
Adequate understanding of internal control (IC).