Video: AICPA Requirements of Independent Auditors

In this lesson, Nick Palazzolo explains the AICPA requirements of independent auditors, emphasizing the need for adequate technical training and adherence to ethical principles as outlined in the Code of Professional Conduct. He discusses the importance of maintaining independence from clients, exercising professional skepticism, and due professional care when planning and performing an audit. Furthermore, the lesson highlights the necessity of communicating findings and conclusions in a clear and concise manner for audit reports. The AICPA Code is mentioned to govern any service performed by a member of the AICPA, including preparations, compilations, and reviews.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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Moving on here, the AICPA requirements of independent auditors. Well, this wonderful American Institute of Certified Public Accountants requires that independent auditors have adequate technical training. You can see in multiple choice questions to meet the requirements of the job. In addition, independent auditors must adhere to the code, which sets forth ethical principles, making sure we're familiar with this. This is nothing revolutionary, nothing groundbreaking. Just want to make sure you see this. See anything asking questions, right? What do you need to have? What do you not need to have? We're going to cover those in depth. The code of professional conduct requires independent auditors to maintain independence from their clients and to exercise professional skepticism. Now we're going to see many engagements. You don't need to be independent, but this is just saying that if you're going to be an independent auditor, right, an auditor, you need independence. So that's going to be something important as you're reading questions. Are we doing an audit or are we doing an engagement where we don't need to be independent? They must also exercise due professional care in planning and performing the audit. We can't just hastily run through it because we want an easy payday, right? We actually need to do a good job. Everyone, no matter what job you're doing, you should be doing a good job, but especially us, right? We are here as the auditors, as the CPAs, as the practitioners to do the best job we can. And then lastly, they have to communicate their findings and conclusions clearly and concisely. Well, generally this is covered by guidance on how your report needs to look. So to be clear and concise, you pretty much have to give a standard report, which has been drilled down

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Ethics & Independence

Module: 3 Concepts, 42 Videos

AICPA Code of Professional Conduct Overview

1:04

AICPA Code of Professional Conduct Objectives

2:42

Introduction to AICPA Code of Professional Conduct

1:55

AICPA Requirements of Independent Auditors