CH 2 Questions

CH 2 Questions - SASs(interpretations of GAAS are codified...

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ACCOUNTING 403W CHAPTER 2 QUESTIONS 1) The AICPA is in charge of non public companies while the PCAOB is in charge of the integrated audits for public companies. 2) GAAP are standards on how to compile financial statements. GAAS are standards on how to conduct an audit. 3) This requirement is usually interpreted to mean college or university education in accounting and auditing, participation in continuing education programs, and substantial public accounting experience. 4) SAS provide more detailed guidance than the 10 GAAS. The
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Unformatted text preview: SASs (interpretations of GAAS) are codified within the framework of the 10 GAAS. They are the most authoritative references that auditors can utilize to resolve problems encountered during the audit of a nonpublic company. 5) 6) The auditor’s responsibility is to acquire reasonable assurance about whether financial statements are free of misstatement. Reasonable assurance is achieved when the audit risk, the risk that the auditor may miss the misstatement on the financial statements, is appropriately low. 7)...
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This note was uploaded on 09/16/2009 for the course ACCTG 471 taught by Professor Muthannette during the Spring '08 term at Penn State.

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