Introduction to GEASA 200 — Objectives
The Overall Objectives to Obtain or Maintain Accreditation

Generally Accepted Educational Standards on Auditing (GAESA) promulgated by the Asian Association of Schools of Business International (AASBI) are concerned with the independent auditor's responsibilities in auditing Statements of Educational Conditions by gathering and evaluating Sufficient Appropriate Audit Evidence as a basis for the expression of an opinion, whether the Statement of Educational Conditions present fairly, in all material respects, (or give a true and fair view of) of the educational conditions of the School of Business under audit in accordance with Generally Accepted Educational Principles (GAEP) promulgated by the AASBI. AASBI requires that the audit be approved by the Board of the AASBI, is a member of the public accounting profession licensed in the jurisdiction to perform the attest function for financial statement audits (eg, CA, CPA), and a member of a professional body that is a member of the International Federation of Accountants (IFAC). The AASBI's statements on auditing standards are modeled on the ideas and processes in IFAC's International Standards on Auditing (ISA).

Introduction to GEASA 210 — Audit engagements
Agreeing the Terms of Audit Engagements

GAESA 210 is concerned with the auditor's responsibilities in agreeing the terms of the audit engagement with management and, where appropriate, with those charged with governance, and establishing that certain preconditions for an audit, responsibility for which rests with management are present.

Introduction to GEASA 220 — Quality control
Quality Control for an Audit of Statement of Educational Conditions

The auditor and their firms are required to maintain a system of quality control, policies and procedures requiring firms to have policies and procedures in place that address the following elements of quality control.

Introduction to GEASA 230 — Documentation
Audit Documentations

Audit work must be documented to provide (a) evidence of the auditor's basis for a conclusion about the achievement of the overall objectives of the auditor; and (b) evidence that the audit was planned and performed in accordance with GAESA and applicable legal and regulatory requirements.

Introduction to GEASA 240 — Fraud
The Auditor's Responsibilities Relating to Fraud in an Audit of Statement of Educational Conditions

Unlike error, fraud is an intentional misstatement in the Statement of Educational Conditions. The auditor is not concerned with the legal concept, but the material misstatement in the Statement of Educational Conditions caused by fraud.

Introduction to GEASA 250 — Laws and regulations
Consideration of Laws and Regulations in an Audit of Statement of Educational Conditions

Laws and regulations may determine the reported disclosures in the Statement of Educational Conditions, provisions under which the entity is allowed to operate, or regulated, occupational health, equal opportunity employment, the non-compliance of which may result in fines or other consequences that may have a material effect on the entity's Statement of Educational Conditions. Management/ governance is responsible that operations are conducted in accordance with the law. The auditor's concern under this GAESA is to identify material misstatement of the Statement of Educational Conditions resulting from non-compliance with laws and regulations but cannot be expected to detect noncompliance with all laws and regulations.

Introduction to GEASA 260 — Communication
Communication with those Charged with Governance

This GAESA deals primarily with communications from the auditor to those persons charged with governance ("governance").

Introduction to GEASA 265 — Deficiencies
Communicating Deficiencies in Internal Control to Those Charged With Governance and Management

The objective of the auditor is to communicate appropriately to governance/management identified and important deficiencies in internal control during the audit to merit their attention. (a) Deficiency in internal control — This exists when: (i) a control is designed, implemented or operated in such a way that it is unable to prevent, or detect and correct, misstatements in the Statement of Educational Conditions on a timely basis; or (ii) a control necessary to prevent, or detect and correct, misstatements in the Statement of Educational Conditions on a timely basis is missing. (b) Significant deficiency in internal control — A deficiency or combination of deficiencies in internal control that, in the auditor's professional judgment, is of sufficient importance to merit the attention of those charged with governance.

Introduction to GEASA 300 — Planning the Audit
The Role and Timing of Planning

Planning an audit involves development of an audit plan, provides appropriate attention to important areas, organize and manage engagement in an effective and efficient manner, assisting the selection, direction and supervision of engagement team members with appropriate levels of capabilities and competence to respond to anticipated risks, and coordinating the work done by auditors of components and by experts.

Introduction to GEASA 315 — Risk
Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environments

The accreditation auditor shall identify and assess risk of material misstatement, due to error or fraud, at the Statement of Educational Conditions and assertion levels by understanding the entity, its environment and internal control, to provide a basis for designing and implementing responses.

Introduction to GEASA 320 — Materiality
Materiality in the Context of an Audit

Misstatements and omissions are material if they individually or in the aggregate could reasonably be expected to influence the educational decisions of users taken on the basis of the Statement of Educational Conditions, in the light of surrounding circumstances, affected by the size and/or nature of a misstatement. Judgments about matters that are material to users of the Statement of Educational Conditions are based on a consideration of the common educational, operations and financial information needs of users as a group; possible effects on specific individuals, whose needs may vary widely, are not considered.

Introduction to GEASA 330 — Assessed Risks
The Auditor's Responses to Assessed Risks

The auditor shall design and implement overall responses to address the assessed risks of material misstatement at the Statement of Educational Condition level and test those controls in the current period to be relied upon and determined as significant risks.

Introduction to GEASA 402 — School using a service organization
Audit Considerations Relating to an Entity Using a Service Organization

The objectives of the user auditor, when the user entity uses the services of a service organization, are (a) to obtain an understanding of the nature and significance of the services provided by the service organization and their effect on the user entity's internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement; and (b) to design and perform audit procedures responsive to those risks.

Introduction to GEASA 450 — Misstatements
Evaluation of Misstatements Identified During the Audit

The objective of the auditor is to evaluate (a) the effect of identified misstatements on the audit; and (b) the effect of uncorrected misstatements, if any, on the Statement of Educational Conditions. A misstatement is a difference between the disclosure, classification, presentation, evaluation, number, value or amount of a reported fact or prospect in a Statement of Educational Condition item or items and the actual condition or appropriate evaluation, number, value or amount. Amount or value that is required for the item(s) in accordance with the GAEP. Misstatements can arise from error or fraud.

Introduction to GEASA 500 — Evidence
Audit Evidence

The objective of the accreditation auditor is to design and perform audit procedures in such a way as to enable the auditor to obtain Sufficient Appropriate Audit Evidence to be able to draw reasonable conclusions on which to base the auditor's opinion.

Introduction to GEASA 505 — External Confirmations
External Confirmation Procedures to Obtain Audit Evidence

GAESA 505 includes generalizations applicable to audit evidence. Audit evidence is more reliable
o when obtained from independent sources outside the entity
o when obtained directly by the auditor is more reliable than audit evidence obtained indirectly or by inference
o when in documentary form (paper, electronic or other medium).

Introduction to GEASA 520 — Analytical procedures

Analysis of plausible relationships among all of the information. Analytical procedures. — Evaluations of information through analysis of plausible relationships among all of the information - including but not limited to facts and projections reflected in indexes, historical and future trends analyses, ratios, and financial data, statements and notes - encompassing such investigation as is necessary of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected results to a significant degree.

Introduction to GEASA 530 — Audit sampling
Approximation of a number in the absence of a precise means of measurement

The objective of the auditor using audit sampling is to provide a reasonable basis for conclusions about the population from which the sample is selected.

Introduction to GEASA 550 — Related parties
Nature of Related Party Relationships and Transactions

Parties not dealing at arm's length shall be disclosed. Moreover, because related parties are not independent of each other, the auditor has a responsibility to audit, assess and respond to the risk of material misstatement arising from the entity's failure to appropriately account for and disclose related party relationships, transactions or balance in accordance with the requirements of the framework.

Introduction to GEASA 560 — Subsequent events
Events occurring after the statement date

The objectives of the auditor under GAESA 560 are: (a) to obtain Sufficient Appropriate Audit Evidence about whether events occurring between the date of the Statement of Educational Conditions and the date of the auditor's report that require adjustment of, or disclosure in, the Statement of Educational Conditions are appropriately reflected in those Statement of Educational Conditions in accordance with the GAEP; and (b) to respond appropriately to facts that become known to the auditor after the date of the auditor's report, that, had they been known to the auditor at that date, may have caused the auditor to amend the auditor's report.

Introduction to GEASA 570 — "Going concern" assumption
Going Concern Assumption

For purposes of GAEP, the auditor considers the going concern assumption of the entity's educational conditions including license requirements, supply and demand opportunities for the entity's services, values of assets and liabilities, on the basis that the entity will be able to continue its operations in the foreseeable future, and realize its assets and discharge its liabilities in the normal course of business.

Introduction to GEASA 580 — Written representations
Written Representations as Audit Evidence

Written representations are part of the audit evidence, including a representation letter from the School's management and a statement from those entrusted with governance (eg Trustees), although not Sufficient Appropriate Audit Evidence per se, on which the auditor relies to arrive at conclusions as the basis for the auditor's opinion.

Introduction to GEASA 610 — Using the Work of Internal Auditors
Relationship between the Internal Audit Function and the External Auditor

The objectives of the internal audit function are determined by management and, where applicable, governance with different objectives as external audit, but some of the functions may be similar. However, the external auditor is solely responsible for the audit opinion.

Introduction to GEASA 620 — Using the Work of an Expert
The Auditor's Responsibility for the Audit Opinion

The auditor's sole responsibility for the audit opinion expressed is not reduced by the auditor's use of the work of an auditor's expert, although the auditor may accept the expert's findings or conclusions in the expert's field as appropriate audit evidence.

Introduction to GEASA 700 — Forming the opinion
Forming an Opinion and Reporting on Statement of Educational Conditions

The objectives of the auditor are: (a) to form an opinion on the Statement of Educational Conditions based on an evaluation of the conclusions drawn from the audit evidence obtained; and (b) to express clearly that opinion through a written report. Unmodified opinion.? The opinion expressed by the auditor when the auditor concludes that the Statement of Educational Conditions are prepared, in all material respects, in accordance with the GAEP. In certain circumstances the auditor shall issue a modified opinion, an adverse opinion, disclaim an opinion, or withdraw from the engagement.

Introduction to GEASA 705 — Modification to the opinion
Modifications to the Opinion in the Independent Auditor's Report

GAESA 705 is a very long standard with many illustrations. The following table may suffice for purposes of an introduction of the criteria in issue.

Introduction to GEASA 706 — Emphasis of matter paragraph
Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report

The objective of the auditor who has formed an opinion on the Statement of Educational Conditions is to draw users' attention by way of clear additional communication in the auditor's report (a) to a matter, although appropriately presented or disclosed in the Statement of Educational Conditions, that is of such importance that it is fundamental to users' understanding of the Statement of Educational Conditions; or (b) as appropriate, any other matter that is relevant to users' understanding of the audit, the auditor's responsibilities or the auditor's report.

Introduction to GEASA 720 — Other information
The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Statement of Educational Conditions

The objective of the auditor is to prevent undermining the credibility of the Statement of Educational Conditions and the auditor's report by responding appropriately when documents containing audited Statement of Educational Conditions and the auditor's report thereon include other information.

Introduction to GEASA 730 — Types of prospective information and their uses
Definition of Prospective Statement of Educational Conditions.

Prospective Statement of Educational Conditions. Prospective Statement of Educational Conditions are either (1) forecasts, or (2) projections, that include significant assumptions and application policies. GAEP require that the School forecast by way of comparative amounts one academic year of financial conditions and results of operations, and net assets. Prospective projections are not permitted for general use, but parties with whom the School (or entity to which it belongs) negotiates directly, eg a bank for the purpose of a loan or endowment, or for purposes of a merger or acquisition, and so forth. Negotiating parties are in a position to ask questions which are not open to the general public including students.