Accountant Professionals Have To Follow Audit and Attest Standards for Better Performance
The audit and attest standards refer to the basic standards that are used to represent attestation engagements. The generally accepted auditing standards, rules and guidelines are set by the Auditing Standards Board of the American Institute of Certified Public Accountants. Attestation represents to the process of engagement in which the service of professional is hired to issue written communication that expresses a final conclusion about the reliability of written assertions prepared by a separate party. The American Institute of Certified Public Accountants has identified a number of different engagements that fall under the scope of attestation standards, and many others including examining financial forecasts and projections, evaluation internal control, examining pro forma financial statements, regulation, assessment of compliance with rules, contractual obligations, and evaluation of management discussions and analysis of financial results.
The establishment of attestation standards was an early attempt that aimed not only to provide guidance for engagement practices, but also for the expansion of assurance services rendered by professional accountants and some other related professionals. Audit and attest standards possess a lot of information in the form of generally accepted auditing standards. They are lengthier as well as comprehensive. The attestation standards can be classified into three different categories, such as general standards, standards of fieldwork, and standards of reporting.
General standards demands minimum qualifications of professionals. It is required in order to accept an attest engagement. The minimum qualifications refer to the technical competence, independence and the ability to exercise due care. Apart from that, the adequate knowledge of the subject matter is essential under general attest standards. The standards of fieldwork define how a particular engagement should be performed. There is a solid engagement required for adequate planning, supervision of the engagement and for the collection of competent evidential matter as a reasonable basis for conclusion. Consideration of internal control is not involved under audit and asset standards because all attention engagements require so. The professional guidelines are being provided by the standards of reporting for communicating findings from attestation engagement to the stakeholders. It is designed in such a way that can examine standard of comparison and outline in the attest reporting standards. Further the goal of the Public Company Accounting Oversight Board is to improve the quality of audited financial statements, increase public trust in financial reporting processes, and reduce the risk of auditing failures in the profession.