Auditing Standards Board (ASB) Definition.

The Auditing Standards Board (ASB) is the body of the American Institute of Certified Public Accountants (AICPA) that establishes auditing and attestation standards for CPAs in the United States. The ASB's mission is to serve the public interest by setting high standards for auditors and by providing guidance to the profession.

What are audit procedures? Audit procedures are the specific actions that an auditor takes to obtain evidence to support their opinion on the financial statements. The most common procedures include inspecting records, documents, and physical assets; observing processes and activities; and interviewing management and employees.

There are three main types of audit procedures:

1. Tests of controls

2. Substantive tests of transactions

3. Analytical procedures

Tests of controls are designed to evaluate the effectiveness of a company's internal controls. Substantive tests of transactions are performed to test the accuracy of the information recorded in the financial statements. Analytical procedures are used to test relationships between data and to identify unusual patterns or trends.

What are key reports in audit? There are a few key reports that every auditor should be familiar with. The first is the "engagement letter." This document outlines the scope of the audit, the fees, and the expectations of both the auditor and the client. The second is the "audit plan." This outlines the specific procedures that the auditor will use to gather data and assess the financial statements. The third is the "audit report." This is the final document that summarizes the auditor's findings and recommendations.

Are auditing standards mandatory? Yes, auditing standards are mandatory in the United States. The Sarbanes-Oxley Act of 2002 requires that all public companies have their financial statements audited by a registered public accounting firm. The auditing standards that must be followed are set by the Public Company Accounting Oversight Board (PCAOB). How many internal auditing standards are there? There are generally accepted standards for internal auditing that have been promulgated by The Institute of Internal Auditors (IIA). The IIA is the global professional association of more than 185,000 members in 170 countries.

The IIA has developed a comprehensive set of international professional practices that internal auditors worldwide can use to provide assurance, consulting, and advisory services within their organizations. The IIA's International Standards for the Professional Practice of Internal Auditing (Standards) provide a framework for performing high-quality internal audit work with competence, integrity, objectivity, and independence.

There are 11 Standards in total, which are grouped into 3 categories:

1. Fundamental Principles
2. Evaluation Activities
3. Reporting Results

You can find a full description of each Standard on The IIA's website. What are AICPA standards called? The American Institute of Certified Public Accountants (AICPA) is the national professional organization of CPAs in the United States. The AICPA establishes ethical standards for the profession and provides guidance on various technical and business issues.