Principles followed by AICPA while Auditing
Auditing such as examination of the books accounts and a bachelor of business as well enables the auditor to satisfy himself that the balance sheet is properly down up. In the words of AICPA-
“Auditing is a process by which competent, independent people accumulates and evaluate evidence about quantifiable information related to a specific economic entity for the purpose of determining and reporting on the degree of correspondence between the quantifiable information and established criteria.”
AICPA has followed the following professional code of conduct are given below-
General standard: The general standard are described below-
(a) The auditor will be sufficiently educated skillful.
(b) The auditor should be in free from malpractice and should be honest.
(c) The auditor should prepare the audit report in skillful mind and enough care.
Standard and field work: The standard and field work are given below-
(a) For preparing good audit report the auditor should prepared audit program. The main auditor should inspect the audit work of the whole audit team.
(b) The auditor should cheek properly the internal control and internal cheek.
(c) The auditor should prepare an audit report for judgments inspection and inquiry the auditor accepts the most acceptable document.
Standard of reporting: The standard of reporting are described below-
(a) The auditor should inspect the report has been prepared generally accepted accounting principle.
(b) The report has been prepared in some way from year to year.
(c) The information included in the financial statement will be true and fair.
(d) The auditor should give the proper reports of the financial information.
