Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Question
Chapter 1, Problem 16RQSC
a.
To determine
Introduction:AICPA regulates accounting profession within the country and issues codes of professional conduct that are to be followed by the AICPA members.
To identify:The advantages and disadvantages of having different accounting standards for the public and non-public company both.
b.
To determine
To identify:The ways in which auditing standards differs for both the public and private companies.
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Students have asked these similar questions
The audit is subjected to the guidelines provided under the International Standards on Auditing. From the statements enunciated here under identify which one of the options does not show the objective of auditing?
a.
Auditing enables an auditor in determination of the true and fair view of the financial position of an enterprise
b.
Auditing enables the auditor to prepare the financial statements of an entity
c.
Auditing enables an auditor to express an opinion on financial statements
d.
Auditing enables an auditor in determination of the true and fair view of the operating results of an enterprise.
How does auditing differ in the global
environment? If the US publicly traded companies
are required to have their financial statements
audited by firms registered and inspected by the
PCAOB, what are the implications if the foreign
governments will not allow PCAOB inspectors into
these audit firms?
Distinguish between auditing standards and generally accepted accounting principles, and give two examples of each.
Auditing standards:
A. represent pronouncements by any of the organizations responsible for setting auditing standards. In the U.S. these standards are set by the PCAOB for public companies and
broker dealers, and by the Auditing Standards Board of the AICPA for other entities.
B. are ten general guidelines to aid auditors in fulfilling their professional responsibilities and maintain professional skepticism and exercise professional judgment.
C. represent the combination of the six principles and four of the Statements on Auditing Standards (SASS) that are codified in the AU-C sections.
D. outline specific rules for accounting for transactions occurring in a business enterprise for all private companies in the United States.
Chapter 1 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 1 - Prob. 1CYBKCh. 1 - Prob. 2CYBKCh. 1 - Prob. 3CYBKCh. 1 - Prob. 4CYBKCh. 1 - Prob. 5CYBKCh. 1 - Prob. 6CYBKCh. 1 - Prob. 7CYBKCh. 1 - Prob. 8CYBKCh. 1 - Prob. 9CYBKCh. 1 - Prob. 10CYBK
Ch. 1 - Prob. 11CYBKCh. 1 - Prob. 12CYBKCh. 1 - Utilitarian theory holds that what is ethical is...Ch. 1 - Prob. 14CYBKCh. 1 - Which of the following statements related to...Ch. 1 - Utilitarianism does not require which of the...Ch. 1 - Prob. 17CYBKCh. 1 - Prob. 18CYBKCh. 1 - Prob. 19CYBKCh. 1 - Which of the following factors is not an example...Ch. 1 - Prob. 1RQSCCh. 1 - Prob. 2RQSCCh. 1 - Prob. 3RQSCCh. 1 - Prob. 4RQSCCh. 1 - Prob. 5RQSCCh. 1 - Prob. 6RQSCCh. 1 - Prob. 7RQSCCh. 1 - Prob. 8RQSCCh. 1 - Prob. 9RQSCCh. 1 - Prob. 10RQSCCh. 1 - Prob. 11RQSCCh. 1 - Prob. 12RQSCCh. 1 - Prob. 13RQSCCh. 1 - Prob. 14RQSCCh. 1 - Prob. 15RQSCCh. 1 - Prob. 16RQSCCh. 1 - Prob. 17RQSCCh. 1 - Prob. 18RQSCCh. 1 - Prob. 19RQSCCh. 1 - Prob. 20RQSCCh. 1 - Prob. 21RQSCCh. 1 - Prob. 22RQSCCh. 1 - Prob. 23RQSCCh. 1 - Prob. 24RQSCCh. 1 - Prob. 25RQSCCh. 1 - Prob. 26RQSCCh. 1 - Prob. 27RQSCCh. 1 - Prob. 28RQSCCh. 1 - Prob. 29RQSCCh. 1 - Prob. 30RQSCCh. 1 - Prob. 31RQSCCh. 1 - Refer to the Why It Matters feature “What Is...Ch. 1 - Prob. 33RQSCCh. 1 - Prob. 34RQSCCh. 1 - Prob. 35RQSCCh. 1 - Prob. 36RQSCCh. 1 - Prob. 37RQSCCh. 1 - As the auditor for XYZ Company, you discover that...Ch. 1 - Prob. 39RQSCCh. 1 - Prob. 40RQSCCh. 1 - Prob. 41RQSCCh. 1 - Prob. 42RQSCCh. 1 - Prob. 43FFCh. 1 - Prob. 44FFCh. 1 - Prob. 45FFCh. 1 - Prob. 46FF
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Similar questions
- Discuss why we have a dual system of auditing standards in the U.S. (AICPA Auditing Standards Committee-Statement on Auditing Standards and the PCAOB-Auditing Standards). Be certain to identify when each system used.arrow_forwardAudit working papers are an integral part of an examination in accordance with international standards on auditing. These documents are very important and need to be well taken care of in the auditing process. Upon completing an audit process, the auditors should issue an opinion on the client’s financial statements. REQUIRED: Explain TWO (2) conditions for the issuance of unqualified opinion on the financial statements. Describe THREE (3) situations that require the auditor to modify their standard report and still issue an unqualified opinion. Explain the purpose of key audit matters in the auditor’s report and how it should be described.arrow_forwardWhich non-audit service is permitted for an SEC audit client? Preparing a point-in-time gap analysis on its technology controls compared to industry standards. Providing a technology service that records accounting entries for the client. Loaning staff to prepare the client’s tax return. Loaning staff to assist with the client’s internal audit function.arrow_forward
- Audit working papers are an integral part of an examination in accordance with international standards on auditing. These documents are very important and need to be well taken care of in the auditing process. Upon completing an audit process, the auditors should issue an opinion on the client’s financial statements. REQUIRED: Describe THREE (3) situations that require the auditor to modify their standard report and still issue an unqualified opinion. Explain the purpose of key audit matters in the auditor’s report and how it should be described.arrow_forwardIf the audit firm is performing an integrated audit for a public company. there is an expectation that the auditor will test controls in order to support an opinion on Internal Control over Financial Reporting (ICFR) the auditor should request the assistance of the prior auditor O the audit should be conducted in conjunction with the internal auditors O there is an expectation that the auditor will audit the financial statements only in order to support an opinion on ICFRarrow_forwardWhich statement best describes how audit firms should apply the general standard in the SEC independence rule? a. Firm should ensure that all services and relationships comply with specific proscriptions in the rule only. b. Firms should apply the general standard only when the specific rules do not address a service or relationship. c. Firms should examine all services and relationships in light of the rule's general standard. d. Firms should consider the general standard as an optional provision in the SEC independence rule.arrow_forward
- The creation of the PCAOB by the Sarbanes–Oxley Act has affected both the standards-setting process and the periodic review of the quality ofan audit firm’s work.Required:a. Identify the responsibilities of the AICPA, PCAOB, and SEC in the auditing standards-setting process.b. Which standard(s) provide guidance for the audits of public entities? Which standard(s) provide guidance for the audits of nonpublic entities?c. What role do the AICPA and PCAOB play in the periodic review of the quality of audit firms’ work?arrow_forwardAICPA and PCAOB Responsibilities. The creation of the PCAOB by the Sarbanes–OxleyAct has affected both the standards-setting process and the periodic review of the quality ofan audit firm’s work.Required:a. Identify the responsibilities of the AICPA, PCAOB, and SEC in the auditing standardssetting process.b. Which standard(s) provide guidance for the audits of public entities? Which standard(s)provide guidance for the audits of nonpublic entities?c. What role do the AICPA and PCAOB play in the periodic review of the quality of auditfirms’ work?arrow_forwardWhat types of companies are required to obtain an independent audit and what is the purpose of the Audit Report?arrow_forward
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