Mohammed
J. Masoud, CPA, CACM, CFE, CICA, MBA
The
American Anti-Corruption Institute (AACI)
Invited
paper presented at the
The
Second Accounting and Auditing International Conference
Organized
by
The Palestine Association of Certified Public
Accountant (PACPA)
Ramallah
– Palestine
May
28-29, 2014
Abstract
This conference paper conducts a review of the
published auditing literature with respect to the responsibility of the
independent auditor[1]
regarding the required level of proficiency she/he should possess in conducting
a financial statements audit. It also reviews the independent auditor’s
responsibility in documenting her/his professional judgments[2] reached for in a financial
statements audit. The objective of this
paper is to address the challenges the independent auditor faces to comply with
relevant International Standards on Auditing (ISAs); specifically the
International Standard on Auditing 230:” Audit
Documentation”. Further, this paper discusses the interrelationships
between the independent auditor’s proficiency and professional judgment and
their impact on audit effectiveness. We found that independent auditors are
requested and expected to document in sufficient and proper details in the
audit file (work papers) not only the audit judgments of significant matters,
but also to demonstrate that the audit was planned, performed, and opined using
the optimum mix and the cutting edge of knowledge, education, experience,
rules, regulations, and the relevant auditing and accounting literature.
[1]
The terms auditor and independent auditor are used interchangeably throughout
this conference paper.
[2]
Professional judgment; audit judgment, professional audit judgment; and
judgment are used interchangeably throughout this conference paper.
LINKS
The complete conference paper: https://drive.google.com/file/d/0B4sCwzCGinSwdC1xYmdYMjBDbXc/edit?usp=sharing
The PowerPoint presentation of the conference paper: https://drive.google.com/file/d/0B4sCwzCGinSwTUQ0YjN2UGZtUGs/edit?usp=sharing
