Proposed statement on auditing standards : the Proposed statement on auditing standards : the auditor's consideration of the internal audit function in an audit of financial statements ;Auditor's consideration of the internal audit function in an audit of financial statements; Exposure draft (American Institute of Certified Public Accountants), 1990, Mar. 12

Authors

American Institute of Certified Public Accountants. Auditing Standards Board

Files

Description

The Auditing Standards Board is considering the issuance of this proposed Statement to provide practitioners with expanded guidance when considering work performed by internal auditors. Internal auditors are responsible for providing analyses, evaluations, assurances, recommendations, and other information to the entity's management and board of directors or others with equivalent authority and responsibility. Many of these activities are relevant to the audit because they provide evidence about the design and effectiveness of internal control structure policies and procedures or direct evidence about misstatements of financial data contained in financial statements. This proposed Statement contains factors to assist auditors in considering the extent of the effect of internal auditors' work on the audit and incorporates concepts of SAS No. 47, Audit Risk and Materiality in Conducting an Audit, and the new terminology and concepts of SAS Nos. 53 through 61, issued in April 1988, particularly SAS No. 55, Consideration of the Internal Control Structure in a Financial Statement Audit.This proposed Statement provides guidance to assist the auditor in: 1. Obtaining an understanding of the internal audit function. 2. Assessing the competence and objectivity of internal auditors. 3. Considering the effect of the internal auditors' work on the auditor's understanding of the internal control structure, assessment of control risk, and design of substantive audit procedures. 4. Evaluating the extent of the effect of the internal auditors' work. 5. Coordinating the audit work with internal auditors. 6. Evaluating and testing the quality and effectiveness of internal auditors' work. 7. Requesting internal auditors to provide direct assistance to the auditor. This proposed Statement would supersede SAS No. 9, The Effect of an Internal Audit Function on the Scope of the Independent Audit.

Publication Date

1990

Relational Format

Book

Keywords

Auditing, Internal -- Standards -- United States; Financial statements -- Standards -- United States

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Recommended Citation

American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statement on auditing standards : the Proposed statement on auditing standards : the auditor's consideration of the internal audit function in an audit of financial statements ;Auditor's consideration of the internal audit function in an audit of financial statements; Exposure draft (American Institute of Certified Public Accountants), 1990, Mar. 12" (1990). Exposure Drafts, Comment Letters, and Statements of Position. 530.
https://egrove.olemiss.edu/aicpa_sop/530