Chapter 5 - Question 13

Question 6 Which of the following are elements of a CPA firm's quality control that should be considered in establishing its quality control procedures and policies? 1.) Engagement Performance 2.) Relevant Ethical Requirements 3.) Monitoring 1. Yes No Yes 2. Yes Yes Yes 3. No No Yes 4. No Yes Yes O 3 O 4 O 2 O 1

1.What is the definitions for the  general importance of ethics and professionalism?

How can failure in ethics affect organizational success? Is it something that can be audited?

Why it is important to have auditing standards? Specifically, why are ethics important to the auditing profession?

LO 5 The following are the key types of risk that audit firms considerwhen they make client acceptance and continuance decisions. Provideexamples of each of these types of risks.• Client entity characteristics• Independence risk factors• Third-party/due diligence risk factors• Quantitative risk factors• Qualitative risk factors• Entity organizational or governance risks• Financial reporting risks

Auditing  Question 3 A. Discuss the audit expectation gap. Your answer should include the following: the main causes of the expectation gap; its main components; and procedures that can be taken to reduce the expectation gap.

Support for Politicization of rule making for accounting standards

Question 4    inherent risk is an important part of the Audit Risk Model and has always been subject to auditor attention.   Required:   In your own words, explain the elements that may influence inherent risk at the financial statement level. ANSWER: