The American Institute of CPAs (AICPA) was founded in 1887 to represent the CPA profession nationally regarding rule-making and standard-setting. The AICPA holds a high level of professional standards for accountants, as well as a strict code of professional ethics, a licensing status and a commitment to serving the public interest. This means that when you are being audited — as an individual or a business — should always seek an accounting firm that abides by AICPA’s guidelines.
An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. Auditing standards ensure that quality measures are in place when performing an audit and that the proper objectives are achieved.
Generally Accepted Auditing Standards
- The auditor must have adequate technical training and proficiency to perform the audit.
- The auditor must maintain independence in mental attitude in all matters relating to the audit.
- The auditor must exercise due professional care in the performance of the audit and the preparation of the report.
Standards of Field Work
- The auditor must adequately plan the work and must properly supervise any assistants.
- The auditor must obtain a sufficient understanding of the entity and its environment.
- The auditor must obtain sufficient appropriate audit evidence.
Standards of Reporting
- The auditor must state in the auditor’s report whether the financial statements are presented in accordance with generally accepted accounting principles.
- The auditor must identify in the auditor’s report those circumstances in which such principles have not been consistently observed.
- When the auditor determines that informative disclosures are not reasonably adequate, the auditor must so state in the auditor’s report.
- 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 auditor’s report.
Click on the link to learn more about our auditing services for non-profits and for-profits. If you have any questions about these auditing standards, call Millan & Company at 512-479-6819 or contact us online.