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Unformatted text preview: 2-7 (Objectives 2-2,2-4,2-5)Who is responsible for establishing auditing standards for audits of public companies? Who is responsible for establishing auditing standards for private companies? Explain.2-10 (Objective 2-6)Generally accepted auditing standards have been criticized by different sources for failing to provide useful guidelines for conducting an audit. The critics believe the standards should be more specific to enable practitioners to improve the quality of their performance. As the standards are now stated, some critics believe that they provide little more than an excuse to conduct inadequate audits. Evaluate this criticism of the 10 generally accepted auditing standards.MULTIPLE CHOICE QUESTIONS FROM CPA EXAMINATIONS 2-16 (Objective 2-6)The following questions deal with generally accepted auditing standards. Choose the best response.a. The first general standard, which states in part that the audit must be performed by a person or persons having adequate technical training, requires that an auditor have o(1) education and experience in the field of auditing. o(2) ability in the planning and supervision of the audit work. o(3) proficiency in business and financial matters. o(4) knowledge in the areas of financial accounting. b. Which of the following best describes what is meant by generally accepted auditing standards? o(1) Acts to be performed by the auditor. o(2) Measures of the quality of the auditors performance. o(3) Procedures to be used to gather evidence to support financial statements. o(4) Audit objectives generally determined on audit engagements. c. The general group of the generally accepted auditing standards includes a requirement that o(1) field work be adequately planned and supervised. o(2) the auditors report state whether or not the financial statements conform to generally accepted accounting principles. o(3) due professional care be exercised by the auditor. o(4) informative disclosures in the financial statements be reasonably adequate....
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- Spring '11