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Part One of this series focuses on key aspects of understanding the purpose of a Financial Statement audit, the auditor’s association with the audit, identifying and breaking down key terms of the SAS and understanding management responsibility for the audit.

The American Institute of Certified Public Accountants (AICPA) AU-C Section 200 Standards address Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards. The statements contain conceptual principles that shape the objectives of an audit, and broad, overarching requirements that govern an audit’s conduct. They address the overall responsibilities of the independent auditor when conducting an audit of financial statements (FS) in accordance with U.S. generally accepted auditing standards (GAAS).

GAAS are developed and issued in the form of Statements on Auditing Standards (SAS) and are codified into Audit Clarity Sections (AU-C sections).  GAAS are written in the context of an audit of financial statement evaluation by an auditor.

  • They can be adapted in the circumstances when applied to other engagements conducted in accordance with GAAS:
    • Audits of other historical financial information
    • Compliance audits
    • Audits of internal control over financial reporting (ICFR) that are integrated with audits of financial statements. 

Learning Objectives

  • Identify the purpose of an audit per AU Section 200
  • Recognize how the auditor is associated with the financial statements.
  • Identify relevant definitions critical to understand generally accepted auditing standards (GAAS) and the audit of financial statements (FS) per AU Section 200
  • Identify management’s responsibilities when having an audit conducted under GAAS per AU Section 200
  • Identify relevant ethical standards.
Last updated/reviewed: November 19, 2019

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  7:12Introduction to AU-C Section 200 Independent Auditor and the Conduct of an Audit in Accordance with GAAS Part One
  4:11Purpose of an Audit
  4:44Auditor's Association with Financial Statements
  19:10FR Framework, Audit Risk and Acceptable Risk
  5:37Financial Statements and Financial Reporting
  7:37Professional Judgment and Skepticism
  6:41Audit Risk Formula and Inherent Risk
  4:10Control and Detection Risk
  6:53Inherent Limitations of an Audit
  3:22Ethical Requirements and Summary
CONTINUOUS PLAY
  1:09:37AU-C Section 200 Independent Auditor and the Conduct of an Audit in Accordance with GAAS Part One Full Video
SUPPORTING MATERIALS
  PDFSlides: AU-C Section 200 Part 1
  PDFAU-C Section 200 Part 1 Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM