b. The Responsibilities principle underlying AICPA auditing standards includes arequirement that(1) field work be adequately planned and supervised.(2) the auditor's report state whether or not the financial statements conform togenerally 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 Performanceprinciples?(1) The competence, independence, and professional care of persons performingthe audit.(2) Criteria for the content of the auditor's report on financial statements andrelated footnote disclosures.(3) The criteria of audit planning and evidence gathering.(4) The need to maintain an independence in mental attitude in all matters per-taining to the audit.2-17 (Objective 2-7) The following questions concern quality control standards. Choosethe best response.a. The nature and extent of a CPA firm's quality control policies and procedures dependonThe CPAFirm's SizeThe Nature of theCPA Firm's PracticeCost-benefitConsiderations(1)(2)(3)(4)YesYesYesYesYesNoYesNoYesNoYesYesb. Which of the following are elements of a CPA firm's quality control that should beconsidered in establishing its quality control policies and procedures?MonitoringEngagement PerformanceHuman ResourcesYesNoYesYes(1)(2)(3)(4)YesYesYesYesNoYesYesNoC. One purpose of establishing quality control policies and procedures for decidingwhether to accept a new client is to(1) enable the CPA firm to attest to the reliability of the client.(2) satisfy the CPA firm's duty to the public concerning the acceptance of new clients.(3) provide reasonable assurance that the integrity of the client is considered.(4) anticipate before performing any field work whether an unqualified opinion canbe issued.LEMSanart of her

Quality control under auditing are the set of policies and procedures that should be followed by…

2-17 (Objective 2-7) The following questlols the best response. a. The nature and extent of a CPA firm's quality control policies and procedures depend on The CPA Firm's Size The Nature of the CPA Firm's Practice Cost-benefit Considerations Yes Yes (1) (2) (3) (4) Yes Yes Yes No No Yes Yes Yes Yes No b. Which of the following are elements of a CPA firm's quality control that should be considered in establishing its quality control policies and procedures? Monitoring Engagement Performance Human Resources No Yes

2-17 (Objective 2-7) The following questlols the best response. a. The nature and extent of a CPA firm's quality control policies and procedures depend on The CPA Firm's Size The Nature of the CPA Firm's Practice Cost-benefit Considerations Yes Yes (1) (2) (3) (4) Yes Yes Yes No No Yes Yes Yes Yes No b. Which of the following are elements of a CPA firm's quality control that should be considered in establishing its quality control policies and procedures? Monitoring Engagement Performance Human Resources No Yes

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 48CYBK

See similar textbooks

Similar questions

Professional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.
The Responsibilities principle underlying AICPA auditing standards includes arequirement that(1) field work be adequately planned and supervised.(2) the auditor’s report state whether or not the financial statements conform togenerally accepted accounting principles.(3) professional judgment be exercised by the auditor.(4) informative disclosures in the financial statements be reasonably adequate.
Which of the following is most closely related to the responsibilities principle?a. The auditors’ responsibility to issue a report as a result of their examination.b. The requirement that auditors gather sufficient, appropriate evidence upon which to base an opinion on the financial statements.c. The auditors’ compliance with relevant ethical requirements of independence and due care.d. The auditors’ responsibility to plan the audit and properly supervise assistants.
What is the general character of the responsibilities characterized by the Performanceprinciples?(1) The competence, independence, and professional care of persons performingthe audit.(2) Criteria for the content of the auditor’s report on financial statements andrelated 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.
Which of the following is the most important responsibility of the external auditor? a. To ensure that financial statements comply with applicable financial reporting framework b. To ensure compliance with laws and regulations applicable to the entity c. To design, implement and maintain a system of internal control d. To express an opinion on a true and fair view of the financial statements
Which of the following is the primary responsibility of auditor? a. To ensure compliance with laws and regulations applicable on the entity b. To design, implement and maintain system of internal control. c. To ensure that financial statement comply with applicable financial reporting framework d. To express an opinion on true and fair view of the financial statements.
Justify the auditor's duty to evaluate conformity with applicable rules and regulations. How does this obligation vary between rules and regulations that have a direct impact on financial statements and those that do not?