Distinguish between auditing standards and generally accepted accounting principles, and give two examples of each.
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- The AICPA has issued several audit and accounting guides for specialized industries. Do auditors have a responsibility to refer to these guidelines when auditing clients to those industries?Select the necessary words from the list of possibilities to complete the following statements: assertion, codification, financial reporting framework, generally accepted accounting principles, International auditing and assurance standards board, interpretations, professional skepticism, quality control, shareholders, and statements on auditing standards Statements Answer 1. The purpose of an audit conducted in accordance with generally accepted auditing standards is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable __________. 2. The serially numbered pronouncements issued by the Auditing Standards Board of the AICPA as generally accepted auditing standards are known as __________. 3. Investors need to compare financial statements of different companies. The standards most frequently followed to prepare…**Objective Question:** Which set of standards governs the conduct of audits performed by certified public accountants (CPAs) in the United States? A) IFRS B) GAAP C) GAAS D) ISA
- One of an accounting firm’s basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of achieving this objective can be obtained by followinga. Generally accepted auditing standards.b. Standards within a system of quality control.c. Generally accepted accounting principles.d. International auditing standards.1. Outline the roles and responsibilities of auditing standard setting bodies. 2. Explain four (4) emerging issues in the auditing profession and the work of an auditor in generalVarious organizations develop standards for audits and regulate CPA firms. Compare and contrast the roles of the AICPA, the PCAOB, and the state boards of accountancy along the following dimensions: a. Standard setting. b. Regulation of CPA firms. c. Source of authority.
- Audit working papers are an integral part of an examination in accordance with international standards on auditing. These documents are very important and need to be well taken care of in the auditing process. Upon completing an audit process, the auditors should issue an opinion on the client’s financial statements. REQUIRED: Describe THREE (3) situations that require the auditor to modify their standard report and still issue an unqualified opinion. Explain the purpose of key audit matters in the auditor’s report and how it should be described.Which section of the regulations require a CPA to comply with Generally Accepted Accounting Principles and Generally Accepted Auditing Standards? If compliance is required by other organizations (PCAOB, AICPA, etc.) why do you think this requirement is also included in the regulations?Audit working papers are an integral part of an examination in accordance with international standards on auditing. These documents are very important and need to be well taken care of in the auditing process. Upon completing an audit process, the auditors should issue an opinion on the client’s financial statements. REQUIRED: Describe THREE (3) functions of the audit working papers. Distinguish between the permanent working paper file and the current working paper file. State ONE (1) example for each of the file. Explain TWO (2) conditions for the issuance of unqualified opinion on the financial statements. Describe THREE (3) situations that require the auditor to modify their standard report and still issue an unqualified opinion. Explain the purpose of key audit matters in the auditor’s report and how it should be described.