Question

3. For each of the following statements or phrases, indicate by letter the professional standard to which it relates
A. SAS 99: "Consideration of Fraud in a Financial Statement Audit"
B. SAS 54: "Illegal Acts by Clients"
C. SAS 57: "Auditing Accounting Estimates"
D. SAS 114 "The Auditor's Communication with Those Charged with Governance"

___1. Disagreements with management on significant accounting and auditing matters.
___2. Investigate large and unusual transactions, particularly those that occur at or near year-end.
___3. Make inquiries about management's policies and procedures for compliance with laws and regulations.
___4. Evaluate the net realizable value of inventory.

Answer 1

1.Disagreements with management on significant accounting and auditing matters is related with SAS 114 i.e. Auditor's Communication

2. Investigate large and unusual transactions, particularly those that occur at or near year-end is related with SAS 99 i.e. Consideration of fraud in financial statement audit.

3. Make inquiries about management's policies and procedures for compliance with laws and regulations it is related with SAS 54 Illegal acts by clients.

4. Evaluate the net realizable value of inventory is related with SAS 57 .