The Bisk GAAS Guide provides an overview of generally accepted auditing standards. There are ten generally accepted auditing standards: 3 general standards; 3 field work standards; and 4 reporting standards. The general standards concern the training and proficiency of the auditor, independence, and due professional care. The field work standards relate to supervision of assistants and planning of the audit, internal control and audit evidence. The reporting standards are concerned with compliance with U.S. GAAP, that the accounting used is consistent from year to year, that appropriate disclosure is made, and that the auditor has expressed an opinion. These ten standards provide the basic framework for the authoritative guidance provided by Statements on Auditing Standards (SASs). This program will provide an overview of the most recent SASs, including the Risk Assessment Suite.

Planning an audit is one of the key requirements of GAAS. Part of effective planning is knowing who the personnel assigned to the engagement are and what their capabilities are. Additionally, understanding the client and its industry are critical to the planning process. If a client has effective internal control, the amount of substantive testing that needs to be done may be substantially reduced. The electronic systems a client is using may not only impact the auditor's understanding of internal control, it may require the auditor to audit through the computer, rather than relying on substantive testing to acquire sufficient evidence.

Audit programs give the auditor a list of procedures to procure evidence to support her/his opinion. Evidence to support the auditor's conclusions is gathered via testing of the client's systems. Sufficient and competent evidence is another of the general standards. Evidence is considered more competent if it is performed by the auditor or received by the auditor from an independent third party (e.g., vendor, customer, bank). Audit sampling helps an auditor achieve sufficient evidence to support her/his opinion while conducting an efficient audit.

The auditor's report is issued as a result of conducting an audit. There are a number of basic types of reports that fall into basically 5 categories: the standard report (also known as an unqualified report); a qualified report; an adverse report; a disclaimer (no report is issued), and an unqualified report with an explanatory paragraph.

There are other types of services a practitioner may provide in addition to an audit of financial statements prepared in accordance with GAAP. The SSARS provide guidance on accounting and review services, which generally consist of compilations or reviews on either GAAP or OCBOA financial statements. Additionally, a practitioner may report on various assertions made by management or other parties in attest engagements. Attest engagements are covered by the authoritative guidance in the SSAEs.

All accountants have certain ethical and legal responsibilities. Auditors must be independent of their clients. They have a duty to maintain their integrity and objectivity, as well as providing due care in the performance of engagements.

Use of Materials

Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the audio CDs and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or DVD or audio CDs that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.

Online
The user should begin by watching the streamed video segment, if any, or listening to the streamed audio segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the streamed video, if any, or listening to the streamed audio, if any, and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or video/audio, if any, that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.

Software
The user should begin by reviewing the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. As the user studies each chapter, s/he should complete the interactive study questions that appear in the lower panel of the screen. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text that were difficult. When the user is ready, s/he should click on the link at the far left to complete the quizzer. The user should email her/his quizzer statistics using the quizzer submission link in the software and the user's CPE certificate will be mailed to her/him.

Chapter 1 discusses auditing standards and guidance.

Chapter 2 reviews the important characteristics of planning the audit.

Chapter 3 looks at internal control, what the auditor should consider in planning the audit, and the necessary audit evidence to support the assessed level of control risk.

Chapter 4 considers the internal control objectives and procedures for specific transaction cycles.

Chapter 5 reviews audit evidence, the competence and sufficiency of it. It also looks at the internal audit function and coordinating with this function. Analytical procedures and using specialists are also considered.

Chapter 6 discusses audit programs and substantive testing as well as providing example audit programs for specific accounts.

Chapter 7 concerns audit sampling, the types of audit sampling, how to use it to reduce audit risk, and the advantages and disadvantages of various sampling techniques.

Chapter 8 discusses auditing electronic data processing (EDP) systems. The effects of EDP-based systems on audits, along with general and application controls are reviewed.

Chapter 9 looks at reports on audited financial statements. There are four general reporting standards as well as a variety of opinions for audited financial statements discussed in this chapter.

Chapter 10 looks at the types of reports issued in addition to those on audited financial statements. Special reports including OCBOAs, letters for underwriters, reports on the application of accounting principles, and those reports restricting the use of an auditor's report are all covered here.

Chapter 11 reviews the professional services a practitioner may render in addition to an audit. These services include compilations and reviews of financial statements, prescribed forms, and attestation engagements.

Chapter 12 concerns a practitioner's ethics and professional responsibilities.

Chapter 13 looks at an accountant's legal responsibilities under civil and criminal law.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this program includes the following designations:

A Biskpoint presents analysis or commentary that attempts to explain or clarify authoritative guidance.

A Bisktip provides practical advice that may be used to help improve client service or service to the practitioner's organization.

A Biskalert is intended to warn the practitioner of a particular situation that may require action or other consideration by the client/the practitioner on behalf of the client.

• Discuss the new risk assessment standards

• Explain quality control standards

• Explain the existence of government auditing standards and when they apply

• Identify the elements of an engagement letter

• Explain the nature of audit risk and materiality

• Discuss the auditor's responsibility for the detection of fraud

• Discuss the implications of illegal acts by the client on the auditor's report and what the auditor must do as a result of discovering an illegal act has been committed

• Discuss the relevance and importance of recently issued Statements of Auditing Standards (SASs)

• Explain why a specialist is used and generally for what purposes

• Discuss the effect of EDP-based systems on the audit

• Discuss the impact of information technology on control risk

• Identify the audit approaches used when information technology is involved

• Identify the types of opinions, audit evidence, and audit reports

• Identify the elements in a standard audit report

• Identify what are acceptable other bases of accounting other than GAAP

• Explain the use of service organizations and the special purpose reports associated with them

• Define what a compilation is and how it differs from a review or an audit

• Discuss the attest standards and how they relate to the general audit standards

• Discuss the auditor's responsibilities to clients and the profession

• Discuss the accountant's civil liability to clients and third parties

J. Russell Madray, CPA, CIA, CMA, CFM, is president of The Madray Group, Inc., which specializes in knowledge transfer. Through a combination of technical writing, training, and targeted consulting, The Madray Group helps businesses, accounting firms, and other organizations understand and implement technical accounting and auditing issues. Mr. Madray earned an undergraduate degree in Accounting and a Master of Professional Accountancy from Clemson University. He is a past member of the AICPA Accounting and Review Services Committee and a current member of the Board of Directors of the SC Association of CPAs. He is the author of numerous publications and articles on accounting and auditing topics, including the AICPA's Compilation and Review Alert. In addition, he speaks to hundreds of groups each year on accounting and auditing topics and has made presentations in more than 40 states. He has more than 15 years of professional experience, including 10 years in public practice. In 1996, he formed The Madray Group to support and facilitate the range of services offered by CPAs to their clients and to enable CPAs to meet the changing needs of their profession. Mr. Madray also serves as a senior lecturer at Clemson University's School of Accountancy and Legal Studies. (Author/Speaker)

Paul Munter, PhD, CPA (CO), is currently a Partner in the Department of Professional Practice—Audit with KPMG. Previously, he served as KPMG Professor and Chairman of the Department of Accounting at the University of Miami in Coral Gables, Florida. Professor Munter earned his PhD in accounting at the University of Colorado. He received his BS and MS degrees from Fresno State University. He is also a CPA. He also served as the Academic Fellow in the Office of the Chief Accountant at the U.S. Securities and Exchange Commission from 2002-2003 where he worked on many of the Commission's Sarbanes-Oxley initiatives and rule-making activities. Prior to that, he was with KPMG as Director in Audit Services in 1995-96. Dr. Munter has been active in the standard-setting process in the U.S. including serving as a member of AcSEC. He previously was a member of the AcSEC Task Force which developed Statement of Position 98-1 on the accounting for software obtained for internal purposes and a member of the AICPA's SPE Task Force. Dr. Munter has published extensively in the accounting literature having co-authored five books and monographs and over 200 articles and technical papers primarily on financial accounting and auditing matters in journals such as Journal of Accountancy, CPA Journal, Management Accounting, Accounting Review, Behavioral Research in Accounting, and Practical Accountant. Dr. Munter was honored by the Texas Society of CPAs as its first "Outstanding Discussion Leader." He has also been honored by the Florida Institute of CPAs as its Outstanding Educator. In 2002, he was honored by Beta Alpha Psi as the National Business Information Professional of the Year. (Author)

Kurt G. Oestriecher, CPA, is a partner with Oestriecher & Company of Alexandria, Louisiana. Mr. Oestriecher is partner in charge of accounting and auditing services, and is also involved in litigation support and small business consulting engagements. In addition to his client responsibilities, Mr. Oestriecher has served as a discussion leader for numerous accounting and auditing courses. Mr. Oestriecher was presented the 1998 and 2005 Outstanding Discussion Leader Award by the LCPA, and received the 2006 AICPA Outstanding Discussion Leader Award. Mr. Oestriecher is a member of the AICPA and the Louisiana Society of CPAs (president, 2002). He has also served on the AICPA Accounting and Review Services Committee (2000-04), and is a past member of the AICPA Council. He is a member of the AICPA Joint Trial Board and the AICPA Virtual Grassroots Panel. (Speaker)