Saturday, March 29, 2014

Audit - General Issues: Part 1

Terms and Definitions:

Risk - fundamental concept that underlies audit process

Materiality & audit risk - underlies application of GAAS

Quality control - process to provide firm with reasonable assurance that its personnel comply with applicable professional standards

Public Company Accounting Oversight Board (PCAOB):

  • Established by Sarbanes-Oxley Act
  • Appointed & overseen by the SEC

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