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Unformatted text preview: studying other accounting topics?
How might understanding auditing concepts prove useful for consultants,
business managers, and other business decision makers?
1-2 Discuss why there is a demand for auditing services in a free-market economy. What evidence suggests that auditing would be demanded even if it
were not required by government regulation?
1-3 What is meant by the statement, “The agency relationship between absentee owners and managers produces a natural conﬂict of interest”?
1-4 Why is independence such an important requirement for auditors? How
does independence relate to the agency relationship between owners and
1-5 Deﬁne auditing, attest, and assurance services.
1-6 The Committee on Basic Auditing Concepts has provided a widely cited
deﬁnition of auditing. What does the phrase “systematic process” mean in
1-7 Deﬁne audit risk and materiality. How are these concepts reﬂected in the
1-8 Brieﬂy describe why on most audit engag...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.