Auditing Standards and Principles

1. The auditor must have adequate technical TRAINING and proficiency to perform the audit.
2. The auditor must maintain INDEPENDANCE in mental attitude in all matters relating to the audit.
3. The auditor must exercise due PROFESSIONAL care in the performance of the audit and the preparation of the report.

1. The auditor must adequately PLAN the work and must properly supervise any assistants.
2. The auditor must obtain a sufficient understanding of the entity and its environment, including its INTERNAL control, to assess the risk of material misstatement on the financial statements whether due to error or fraud, and to design the NATURE, TIMING, and EXTENT or further audit procedures.
3. The auditor must obtain sufficient appropriate audit EVIDENCE by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit.

1. The auditor must state in the auditors report whether the financial statements are presented in accordance with GAAP.
2. The auditor must identify in the auditors report those circumstances in which such principles have not been CONSISTENTLY observed in the current period in relation to the prior period.
3. When the auditor determines that INFORMATIVE disclosures are not reasonably adequate, the auditor must so state in the auditors report.
4.The auditor must either express an OPINION regarding the financial statements, taken as a whole or state that an opinion cannot be expressed, in the auditors report. When the auditor cannot express an overall opinion, the auditor should state the reasons therefore in the auditors report. In all cases where an auditors name is associated with financial statements, the auditor should clearly indicate the character of the auditors work, if any, and the degree of responsibility the auditor is taking, in the auditors report.

Auditors are responsible for:
-- Having appropriate competence and capabilities to perform the audit.
--Complying with relevant ethical requirements.
--Maintaining professional skepticism and exercising professional judgement throughout the planning and performance of the audit.

[To express an opinion, the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement (whether fraud or error).
To obtain reasonable assurance, which is a high but not absolute level of assurance, the auditor:
--Plans the work and properly supervises any assistants.
--Determines and applies appropriate materiality level or levels throughout the audit.
--Identifies and assesses risks of material misstatement, whether due to fraud or error, based on an understanding of the entity and its environment, including the entities internal control.
--Obtains sufficient appropriate audit evidence about whether material misstatements exist, through designing and implementing appropriate responses to the assessed risks.

Based on evaluation of the evidence obtained, the auditor expresses an opinion in accordance with the auditors findings, or states that an opinion cannot be expressed, in the form of a written report. The opinion states whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.