Auditing Theory
The Authority Attaching to Philippine Standards Issued by the AASC Engagement Standards | Application | 1. Philippine Standards on Auditing (PSAs) | * Audit of historical financial statements | 2. Philippine Standards on Review Engagements (PSREs) | * Review of historical financial information | 3.Philippine Standards on Assurance Engagements (PSAEs) | * Assurance engagements dealing with subject matters other than historical financial information | 4. Philippine Standards on Related Services (PSRSs) | * Compilation engagements * Engagements to apply agreed-upon procedures to information * Other related services engagements as specified by the AASC |
1. PSAs, PSREs, PSAEs and PSRSs are collectively referred to as the AASC’s Engagement Standards.
2. Philippine Standards on Quality Control (PSQC) are to be applied for all services falling under the AASC’s engagement standards.
3. Philippine Standards are applicable to engagements in the Public Sector.
The Authority Attaching to Practice Statements Issued by the AASC
1. Philippine Practice Statements are issued to: * Provide interpretive guidance and practical assistance to professional accountants in implementing Philippine Standards; and * Promote good practice.
2. Professional accountants should be aware of and consider Practice Statements applicable to the engagement.
3. A professional accountant who does not consider and apply the guidance included in a relevant Practice Statement should be prepared to explain how the basic principles and essential procedures in the AASC’s Engagement Standard(s) addressed by the Practice Statement have been complied with.
PHILIPPINE FRAMEWORK FOR ASSURANCE ENGAGEMENTS
1. The Framework does not itself establish standards or provide procedural requirements for the performance of assurance engagements.
2. In addition to the Framework and PSAs, PSREs and PSAEs, practitioners who perform assurance engagements are governed by:
1. PSAs, PSREs, PSAEs and PSRSs are collectively referred to as the AASC’s Engagement Standards.
2. Philippine Standards on Quality Control (PSQC) are to be applied for all services falling under the AASC’s engagement standards.
3. Philippine Standards are applicable to engagements in the Public Sector.
The Authority Attaching to Practice Statements Issued by the AASC
1. Philippine Practice Statements are issued to: * Provide interpretive guidance and practical assistance to professional accountants in implementing Philippine Standards; and * Promote good practice.
2. Professional accountants should be aware of and consider Practice Statements applicable to the engagement.
3. A professional accountant who does not consider and apply the guidance included in a relevant Practice Statement should be prepared to explain how the basic principles and essential procedures in the AASC’s Engagement Standard(s) addressed by the Practice Statement have been complied with.
PHILIPPINE FRAMEWORK FOR ASSURANCE ENGAGEMENTS
1. The Framework does not itself establish standards or provide procedural requirements for the performance of assurance engagements.
2. In addition to the Framework and PSAs, PSREs and PSAEs, practitioners who perform assurance engagements are governed by: