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Unformatted text preview: 2-32SOLUTION: Clinton CompanyGenerally Accepted Auditing StandardsJones's Actions Resultingin Failure to Comply WithGenerally Accepted Auditing StandardsGeneral Standards(1)The auditor must have adequate technical training and proficiency to perform the audit.It was inappropriate for Jones to hire the two students to conduct the audit. The audit must be conducted by persons with proper education and experience in the field of auditing. Although a junior assistant has not completed his formal education, he or she may help in the conduct of the audit as long as there is proper supervision and review.(2)The auditor must maintain an independence in mental attitude in all matters relating to the audit.Because of the financial interest in whether the bank loan is granted, Jones is not independent.(3)The auditor must exercise due professional care in the performance of the audit and the preparation of the report....
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This note was uploaded on 11/22/2011 for the course ACC 435 taught by Professor Hathcock during the Fall '11 term at National.
- Fall '11