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

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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.

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