![]() ![]() The above draft PSAs differ from ISA 210 with respect to the deletion of the section on Public Sector Perspective included in ISA 210. It is intended to assist the auditor in preparing engagement letters for audits and related services, principles and procedures applicable to recurring audits, and acceptance of a change in engagement. Generally accepted auditing standards (GAAS) comprises a list of 10 standards, divided into the following three sections: General Standards The auditor must have adequate technical training. ED 2 addresses the terms of audit engagements. ![]() ED 1 contains the framework of the basic principles and essential procedures that provide guidance for their application in the audit of the financial statements, financial reporting, levels of assurance, other information and related services. 1: Framework of Philippine Standards on Auditing. Following are the first two PSA exposure drafts: The PSAs may also have application, as appropriate, to other related activities of auditors. ![]() The PSAs issued by the ASPC shall apply whenever an independent examination of financial statements of any entity, whether profit oriented or not, irrespective of size or legal form, when such examination is conducted for the purpose of expressing an opinion thereon. The adopted standards, which will be called Philippine Standards on Auditing (PSAs), will supersede the counterpart local Statements of Auditing Standards of Philippines (SASPs) previously issued by the ASPC. GAAP and GAAS: GAAP (Generally Accepted Accounting Principles) ensures to have some standards in preparing the financial statements (accounting aspect) of a company, while GAAS (Generally Accepted Auditing Standards) provides a framework to prepare a transparent and reliable audit report of a company. This harmonization is expected to enhance the reliability and acceptability of audited financial statements of Philippine companies. ASPC's objective is to attain uniformity of the local GAAS with ISAs. ![]()
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