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Unformatted text preview: (Yes or No) 5) Auditor John Doe is the partner on an audit engagement for which his wife is the President and CEO. John is able to maintain an independent mental attitude. Using the 2 nd general standard of GAAS, indicate whether John is considered independent and briefly support your position. 6) An audit is performed without any reliance upon the client’s ability to properly record transactions (no internal controls reliance). Because there is no internal control reliance, the auditor does not plan to do anything relative to internal controls. Is this approach acceptable. Briefly explain why or why not. 7) Should an audit be designed to obtain absolute assurance that the financial statements are free of material misstatement? (Yes/ NO) no explanation required....
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This note was uploaded on 08/06/2008 for the course ECON 132A taught by Professor Anderson during the Spring '08 term at UCSB.
- Spring '08