Understanding Auditing Standards

Introduction

• Amanda introduces the topic of auditing standards and acknowledges the audience.
• She has taught auditing for over a decade at a major Australian university.
• Importance of auditing standards as the foundation of auditing.

Overview of Auditing Standards

• Standards vary by jurisdiction:
  • Australian Auditing Standards
  • International Standards on Auditing (ISA)
  • US Standards on Auditing (SAS)
• While not entirely aligned, the structure and layout are similar across the globe.

Tip 1: Unlocking the Structure of Audit Standards

• Key Components of Standards:
  • Objective: Purpose of the standard.
  • Definitions: Critical for understanding key terms (e.g., engagement letter, inherent risk).
  • Requirements: Explicit rules auditors must follow, often laid out in a sequence (start, middle, end of the audit).

Tip 2: Explanatory and Application Material

• Importance of reviewing explanatory material that follows the requirements.
• Provides context and examples to clarify requirements.
• Suggestion: Bookmark sections for easy navigation.

Tip 3: Utilize Existing Resources

• Amanda has created resources explaining auditing standards in detail.
• Other resources include:
  • Videos from public accounting firms.
  • Material from major professional associations (e.g., AICPA in the US, Auditing Standards Board in Australia).
  • Consider creating a playlist of useful videos for visual learners.

Tip 4: Retrieval Practice

• Importance of practicing retrieval of learned information.
• Techniques include:
  • Writing notes in your own words for better understanding.
  • Creating quizzes with peers to test knowledge.
  • Using concept maps to link ideas and understand relationships between audit concepts.
• Applying auditing standards to real-life situations to reinforce learning.

Bonus Resources

• Amanda provides a link to a Word document template for summarizing audit standards:
  • Includes fields for standard number, name, summary, and areas requiring professional judgment.
• Students are encouraged to think critically about where auditors need to make judgments.

Conclusion

• Amanda encourages sharing experiences and techniques for learning auditing standards in the comments.
• Thanks viewers and invites them to subscribe or visit her website for more resources.