Accounting and Auditing

Accounting and auditing standards are referred as A&A. Accounting standards provide guidance for the creation of financial statements. Auditing standards provide guidance regarding how to prove the financial statements are materially correct. Auditors need to understand both accounting and auditing standards.

Accounting standards come from the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). Both bodies create drafts of standards that are subject to public review and feedback. Once approved, they become a part of the respective codifications.

Accounting standards constantly evolve. They are developed to meet the needs of those who read financial statements. The standards provide guidance about financial statements such as a balance sheets and disclosures, sometimes called notes to the financial statements.

Auditing standards are issued by the American Institute of CPAs. Opinions rendered under this set of rules are usually issued in the United States, both for non-governmental and governmental entities. The purpose of the audit standards is to provide a basis for auditors to gain sufficient evidential matter to support the opinions issued. Auditors most commonly issue unmodified opinions, meaning the auditor believes there are no material misstatements in the financial statements.

GASB 102

GASB Local Governments

GASB 102, Certain Risk Disclosures: A New Standard

GASB 102, Certain Risk Disclosures, provides information about concentrations and constraints that expose the government to financial risks. Such…

Center for Plain English Accounting

Accounting and Auditing

A Review of the Center for Plain English Accounting (CPEA)

Do you ever need a heavy-weight to assist you with a complex accounting issue? Or do you ever wonder…

bank confirmations

Auditing

How to Know When to Send Bank Confirmations

Should you always send bank confirmations? Bank confirmations are not a required audit procedure, yet many firms always send…

audit walkthrough

Accounting and Auditing Auditing Risk Assessment

How to Use Audit Walkthroughs to Find Control Weaknesses

What is the purpose of audit walkthroughs? How do you document walkthroughs? Is it better to use checklists, flowcharts…

accounting and auditing

Accounting Auditing

Understand U.S. Accounting and Auditing Standards Now

What accounting and auditing standards do accountants follow in the United States? And who issues them? Understanding these standards…

opinion units

Auditing Local Governments

See How Opinion Units Affect Governmental Audit Planning and Opinions

Most governments have multiple opinion units requiring unique audit plans. Below, I explain how governments use two different measurements…

work paper dates

Auditing

Are Your Work Paper Dates Revealing Incorrect Audit Sequences?

Audit file work paper dates are telling. They can tell us something good, or they can tell us something…

test journal entries

Accounting and Auditing Auditing Fraud

Learn How to Test Journal Entries to Detect Fraud

Here’s a video explaining how to test journal entries as an auditor. By doing so the right way, you…

segregation of duties

Accounting and Auditing Asset Misappropriation Fraud

Understand Segregation of Duties and How to Create It

What is segregation of duties and how can you achieve it? In this post, I answer these two questions….