Public Company Accounting Oversight Board (PCAOB)

The purpose of this paper is to explain the nature and functions of auditing, relate them to the audit functions in Enardo, Inc., describe the elements of the Generally Accepted Auditing Standards (GAAS) and how these standards apply to financial, operational, and compliance audits, explain the effect that the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board (PCAOB) will have on audits of publicly traded companies, and discuss the additional requirements that are placed on auditors from this Act as well as the actions of the PCAOB.

Auditing is the process by which economic events and processes are evaluated and verified as true and correct. The auditing process consists of gathering, evaluating, and reporting.
The accounting manager compiles all of the information provided by the various departments and submits it to the CFO for evaluation. This information is then evaluated by examining of the supporting documents and the balance of accounts. If there is a discrepancy, the matter is looked into further in an effort to discover what internal control went wrong. Once the information has been verified as accurate, it is compiled and presented in the financial
The General Standards require that the auditor be proficient and trained adequately, maintain independence, and exercise due professional care throughout the audit. They apply to all auditing professionals in all areas. The Standards of Fieldwork require that the audit be adequately planned, assistants be supervised, the auditor be educated in the clients business operations and internal controls, and compile sufficient competent audit evidence. They are the standards by which the audit itself should be conducted. The Standards of Reporting require the auditor to include in their report a statement that the entity 's financials follow GAAP, any inconsistencies of principles, inadequate disclosures, and an opinion of the statements or reason why opinion cannot be stated. They help to maintain a consistency of reporting as well as improve communication of the auditing reports. Operational audits are conducted on the operations of an entity and require a certain level of knowledge of the standard operations of the entity and it 's industry in order to improve operations for the entity. Financial audits are conducted with an emphasis on the processes of the entity as well as their financial data and require the auditor to be educated in both. Compliance audits require the auditor to be knowledgeable in the entity 's policies and procedures to assure they are being