Question

The following questions deal with auditing standards. Choose the best response. a. Which of the following...

The following questions deal with auditing standards. Choose the best
response.
a. Which of the following best describes what is meant by U.S. auditing standards?
(1) Acts to be performed by the auditor
(2) Measures of the quality of the auditor’s performance
(3) Procedures to be used to gather evidence to support financial statements
(4) Audit objectives generally determined on audit engagements
b. The Responsibilities principle underlying AICPA auditing standards includes a
requirement that
(1) the audit be adequately planned and supervised.
(2) the auditor’s report state whether or not the financial statements conform to
generally accepted accounting principles.
(3) professional judgment be exercised by the auditor.
(4) informative disclosures in the financial statements be reasonably adequate.
c. What is the general character of the responsibilities characterized by the Performance
principles?
(1) The competence, independence, and professional care of persons performing the audit
(2) Criteria for the content of the auditor’s report on financial statements and
related footnote disclosures
(3) The criteria of audit planning and evidence gathering
(4) The need to maintain an independence in mental attitude in all matters pertaining
to the audit

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a. Which of the following best describes what is meant by U.S. auditing standards?

Answer: (2) Measures of the quality of the auditor’s performance

Explanation: Auditing standards are formed so that auditors follow standard procedures to ensure quality performance of an audit.

b. The Responsibilities principle underlying AICPA auditing standards includes a requirement that

Answer: (3) Professional judgment be exercised by the auditor.

Explanation: An auditor is always responsible to show professional judgment and skepticism during the audit.

c. What is the general character of the responsibilities characterized by the Performance?

Answer: (3) The criteria of audit planning and evidence gathering

Explanation: Here Performance is related to planning and executing the audit effectively by gathering sufficient and appropriate evidences.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following questions address CPA firms and entities that regulate them. Choose the best response. a....
The following questions address CPA firms and entities that regulate them. Choose the best response. a. An auditor of an entity subject to the rules of the SEC must conduct the financial statement audit in accordance with (1) PCAOB standards. (2) Statements on Standards for Accounting and Review Services. (3) International Auditing Standards. (4) Generally Accepted Government Auditing Standards. b. Which of the following provides authoritative guidance for the auditor of a nonpublic company? (1) An article in the Journal...
1.
Under which of the following circumstances would a disclaimer of opinion be appropriate? A) The...
1.
Under which of the following circumstances would a disclaimer of opinion be appropriate? A) The auditor believes management’s estimates of the useful lives of key assets are unreasonable, but management refuses to change the estimates. B) Management does not provide reasonable justification for a change in accounting principles. C) The chief executive officer is unwilling to sign the management representation letter. D) The auditor believes, with evidence, that the chief executive officer has committed material fraud. 2.The auditor is...
The auditor’s judgment concerning the overall fairness of presentation of financial position, results of operations, and...
The auditor’s judgment concerning the overall fairness of presentation of financial position, results of operations, and changes in cash flow is applied within the framework of: a.         quality control. b.         generally accepted auditing standards which include the concept of materiality. c.         the auditor’s evaluation of the audited company’s internal control. d.         generally accepted accounting principles To emphasize the fact that the auditor is independent, the addressee of the audit report is usually not: a.         the company’s management. b.         the stockholders of the client company. c.         the board...
1.Which of the following is not a type of materiality? Auditor’s materiality Performance materiality Overall materiality...
1.Which of the following is not a type of materiality? Auditor’s materiality Performance materiality Overall materiality SUM 2.T/F. The planned audit evidence is subject to change based on the results of the audit risk model 3.T/F. An auditor with a long term relationship with a client than a short term relationship may suffer harm, even though the audit report rendered for the client is correct. 4.T/F. When auditing inventory, sheet to floor is an example of tracing and floor to...
Identify each of the following items as being associated with (a) an AICPA financial statement audit....
Identify each of the following items as being associated with (a) an AICPA financial statement audit. (b) a PCAOB integrated audit. (c) both sets of audit standards. _____ AS 5 _____ “must” means a mandatory responsibility _____ operating effectiveness of ICFR must be tested _____ significant risks must be identified even if ICFR is not tested _____ 10 generally accepted auditing standards _____ competent evidence _____ appropriate evidence _____ sufficient evidence Match the following terms and descriptions. (a) Making a...
Q1 Generally accepted auditing standards are A Required procedures to be used to gather evidence to...
Q1 Generally accepted auditing standards are A Required procedures to be used to gather evidence to support financial statements. B Policies and procedures designed to provide reasonable assurance that the CPA firm and its personnel comply with professional standards. C Pronouncements issued by the Auditing Standards Board. D    Rules acknowledged by the accounting profession because of their universal application. Q2 An attestation engagement is one in which a CPA is engaged to A Testify as an expert witness in accounting,...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and in the opinion of the auditor, are both important and relevant to those charged with governance in overseeing the financial reporting and disclosure process are called a.   Audit matters of governance interest b.   Significant audit matters c.   Auditor findings d.   Material misstatement in the financial statements 20.   Audit matters of governance interest to be communicated to those charged with governance ordinarily include a.   Audit...
auditor's responsibility section of the standard unmodified opinion audit report under US GAAS states: A. That...
auditor's responsibility section of the standard unmodified opinion audit report under US GAAS states: A. That the audit is designed to obtain reasonable assurance as to whether the financial statements are free of material misstatement whether due to fraud or error B. that the procedures performed were specified by generally accepted auditing standards C. that the financial statement audit includes procedures sufficient to express an opinion on whether the companyÕs internal control over financial reporting is effective D. all of...
In reporting under Government Auditing Standards, an auditor most likely would be required to communicate management’s...
In reporting under Government Auditing Standards, an auditor most likely would be required to communicate management’s misappropriation of assets directly to a federal inspector general when the fraudulent activities are Accompanied by fraudulent financial reporting that results in material misstatements of asset balances. Reported to the entity’s governing body and the governing body fails to make a required report to the federal inspector general. Concealed by management by circumventing specific internal controls designed to safeguard those assets. Perpetrated by several...
1Which of the following statements is correct concerning the concept of materiality? A. Materiality depends only...
1Which of the following statements is correct concerning the concept of materiality? A. Materiality depends only on the amount of an item relative to other items in the financial statements. B. Materiality depends on the nature of an item rather than the amount. C. Materiality is a matter of professional judgment of auditor. D. Materiality is determined by reference to guidelines established by the SPK. 2Which of the following is not an audit procedure for subsequent events? A. Review of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT