Audit - General Issues: Part 2

General Accepted Auditing Standards & Elements - AICPA provided PDF

3 General Standards:

1. Adequate training & proficiency
2. Independence of mental attitude
3. Due professional care 

3 Fieldwork Standards:

1. Proper planning & supervision
2. Understanding the entity & its environments, including internal control
3. Sufficient appropriate audit evidence

4 Reporting Standards:

1. Financials are presented in accordance with GAAP
2. Circumstances where principals are not consistent with PY are identified
3. State any informative disclosures that are not reasonably adequate
4. Express an opinion

5 Quality Control Elements:

1. Independence, integrity, objectivity
2. Personnel management
3. Acceptance & continuation of clients
4. Engagement performance
5. Monitoring

To succeed in an action against the auditor, the Client must be able to show the following:

1. CPA had a duty to perform
2. CPA breached the contract
3. Client suffered losses
4. There is a close causal connection between the auditor's behavior and damages suffered by the Client