[Anonymous]

My brain seems to have gone haywire over the last few days but I needed some clarification regarding GAAS / PCAOB / SAS

Now just to set this straight the use of “GAAS” in audit reports is just a placeholder for the proper quality standards to be used based on the region / entities use correct?

When auditing FS of Public companies you will follow PCAOB so it will state in the Auditors Responsibility Paragraph that “ We conduced the audit in accordance with the Auditing Standards of the Public Company Oversight Board….” So all public companies will always follow PCAOB standards

If Private then it will be replaced with SAS – Statement on Auditing Standards correct?

Appreciate any help,

Thank you!

[Anonymous]

GAAS compliance is required for all audits (from public to government to nonissuers)

Aicpa

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acc standards board (ASB)—promulgates Statements on Aud standards(SAS) for nonissuers

SEC

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PCAOB—promulgates its own auditing standards (AS) for issuers

I believe you say “we conducted our audit in accordance with GAAS” for all audits since GAAS compliance is always mandatory.

Someone correct me if I'm wrong

[stoleway]

Are you using the current version of audit review course? there's been a lot of changes on how these things are worded due to the clarity project , you have to be very careful using old materials.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

Hi guys thanks for your response, I am using the new Becker material but got confused because all the audit reports stated “In accordance with GAAS” however when I look at tables it says PCAOB standards for public or SAS for private must be followed. Shouldn’t that be specific instead of just saying GAAS?

If I get this right GAAS are just accepted standards and the 2 most common accepted standards for testing purpose are PCAOB and SAS.

[nicole2035]

don't feel bad because i had this same problem till this post. it threw me off when I first began studying, because they were being interchanged, and there was no real break down on hierarchy for particular situations

[Anonymous]

Hey Nicole, yea you would expect to have a proper hierarchy table showing this !! Were you able to resolve this problem?

I need a breakdown of this if anybody else can help.

[maxwillguy]

So… I am sitting for AUD on Monday. If I understand correctly (and I hope I do), GAAS used to be the 10 standards (TID, PIE, GCDO) but now with the change to the 7 clarified standards (SAS), GAAS is simpy a way to measure Audit quality. So yes, in the reports, “in accordance with GAAS (or Auditing Standards in the US).”

And whoever above said AICPA SAS = non-issuers, PCAOB (oversight by SEC) = issures is correct.

And there are minor differences but obviously those are important to know.

I hope this helps. If not, it helped me to write it out from memory.

FAR - Passed (2/14)
REG - Passed (5/14)
Audit - Passed (8/14)
BEC - 8/31

[Anonymous]

So I was initially correct besides the fact that it will be always stated as GAAS and not changed. Makes sense thank you all.

Good luck on monday Maxwillguy ! hope you pass. How have you prepared for AUD ? I have about 2 weeks left and took a sample test today scoring a 63% total which really has me bummed. I review the material and feel like I know it then there’s something else on the list that catches me off guard. Using Becker + Ninja Audio and loosing hope already.

[maxwillguy]

Thanks and good luck to you too. I passed FAR and REG so far with CPAexcel. I finished the CPAexcel audit material in about 45 hours versus 140 for FAR and 100 for REG and have been reviewing the last week. I feel pretty confident which makes me nervous. I kind of just want to get it over with but I am going to study about 15 more hours before the exam on Monday just in case. If I fail at least I know I put in 70 hours which is what I have read is around the recommended amount. I got a 73% on my practice exam but I got the same scores for FAR and REG and passed those so I don't put too much weight into it.

Audit seems alot easier which is going to make it extremely frustrating if its the first section I don't pass.

I'm just tired of looking at the same thing and ready to move on to BEC which is hopefully the easiest section (I've heard) and I can be done.

FAR - Passed (2/14)
REG - Passed (5/14)
Audit - Passed (8/14)
BEC - 8/31

[Anonymous]

Thanks Max really appreciate it. Hope to hear good news from us both soon hah. And I agree with you on looking at the same thing over and over is pretty frustrating.

Just to jump back into my question I was reviewing the Becker notes and in there it stated:

“Due to SOX, reports on issuer should reference PCAOB standards instead of auditing standards generally accepted in the U.S”

Now this makes me even more confused considering the comments above. I don’t understand why the book can’t give a clear cut answer? The material is unorganized and at times I feel purposely written to confuse you into failing hence making them more money.

[maxwillguy]

Just read the unmodified report for the language and go with that. Sorry if I gave you bad advice!

FAR - Passed (2/14)
REG - Passed (5/14)
Audit - Passed (8/14)
BEC - 8/31

[Author]

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