Competence as an independent auditor includes all of the following except

The Responsibilities principle requires that auditors be responsiblefor having appropriate competence and capabilities to perform the audit. What are thevarious ways in which auditors can fulfill this principle?

IT audit standards of practice require that IT auditors: [SELECT ALL THAT APPLY] a) Must exercise due professional care when performing audit procedures. b) Must maintain objectivity and independence to avoid introducing bias in their reports. c) Should be professionally competent, and possess the skills and knowledge to conduct the audit. d) Must obtain an audit certifications

TRUE OR FALSE. AUDITING 1. An audit of accounting and financial system and controls to ensure reliability of recorded financial data is compliance audit. 2. Assurance engagement requires independence on the part of the auditor. 3. The intended user is the person or class of persons who engages the professional accountant 4. Appropriateness refers to quality, while sufficiency refers to quantity of evidential matter 5. The responsible party expresses an conclusion that provides a level of assurance as to whether the subject matter conforms, in all material respects , with the identified suitable criteria 6. The subject matter of an assurance engagement maybe presented as a point in time or covering a period of time. 7. In an audit of financial statements, the suitable criteria to be used is the Philippine Standards of Auditing. 8. Assurance refers to the responsible party’s satisfaction as to the reliability of the assertion being made by one party for use of another party. 9. When…

In making a decision whether to accept or reject an engagement, an auditor should consider competence, independence, integrity of the prospective client's management and its ability to serve the client properly. Furthermore, the auditor is expected to perform the following (choose all the items that apply to the previous statement): * a. Obtain a preliminary knowledge of the client's business and industry to determine whether the client management has the degree of competence required by the engagement. b. Consider whether there are any threats to the firm's independence and objectivity, and if so, whether adequate safeguards can be established. c. Evaluate auditability. d. Investigation of the integrity of the client's management through inquiry to appropriate parties or communication with the successor auditor. e. Agree on the terms of the engagement and prepare a management representation letter. f. Evaluation of the firm's ability to serve the prospective client.

Practice question: In the context of auditing, having competent technical abilities and skills as an accountant is more important than ensuring auditor independence and understanding the procedures to overcome threats to independence. Do you agree with this statement? Why or why not? Use examples to facilitate your explanation.

multiple choice When an independent auditor decides that the work performed by internal auditors may have a bearing on the nature, timing, and extent of the independent auditor's procedures, the independent auditor should evaluate the competence and objectivity of the internal auditors. Relative to objectivity, the independent auditor should: a) Consider the organizational level to which the internal auditor reports the results of their work. b) Review the training program in effect for the internal audit staff. c) Examine the quality of the internal audit reports. d) Consider the qualifications of the internal audit staff.

In the assessment of an audit, what are the primary issues for consideration?Select one:   a. All of the others are correct. b. The auditor must be perceived as independent. c. The auditor must be deemed competent. d. The auditor must be perceived as objective.

Generally accepted auditing standards require auditors to be independent.Included within this standard are the concepts of independence in fact and independence in appearance.Required:a. Define independence in fact and independence in appearance.b. What two general types of relationships would normally compromise auditors’ independence?c. For each of the following separate situations, discuss whether you believe the auditors’ independence has been compromised.1. The auditors’ firm provides extensive consulting services to the client; these services provide revenues to the firm that exceed revenues received from the audit engagement.2. The spouse of the partner in charge of the audit engagement occupies an executive-level position within the client.3. A distant relative of a partner within the firm occupies an entry-level position within a client of the firm. (The audit is conducted by another office of the firm with which the partner has infrequent contact.)4. A staff member within the…

When establishing an understanding with an audit client, that understanding should be documented Group of answer choices: a. Through a management representation letter. b. In a manner completely based on the auditor’s seasoned professional judgment. c. Either orally or in writing with the client. d. Through use of an engagement letter.

Which of the following is most closely related to the responsibilities principle?a. The auditors’ responsibility to issue a report as a result of their examination.b. The requirement that auditors gather sufficient, appropriate evidence upon which to base an opinion on the financial statements.c. The auditors’ compliance with relevant ethical requirements of independence and due care.d. The auditors’ responsibility to plan the audit and properly supervise assistants.

Registered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows:· integrity· objectivity· professional competence and due care· confidentiality· professional behaviorThe following actions taken by registered external auditors are example of non-compliance with one or more principles listed above;   Question 1 Mark Proctor, a registered auditor arranged with some of his clients to pay the fees that he charged for auditservices, in cash. For clients who agreed to do so, no VAT was charged and a discount was given.

What is the general character of the responsibilities characterized by the Performanceprinciples?(1) The competence, independence, and professional care of persons performingthe audit.(2) Criteria for the content of the auditor’s report on financial statements andrelated footnote disclosures.(3) The criteria of audit planning and evidence gathering.(4) The need to maintain an independence in mental attitude in all matters pertaining to the audit.

The first stage when an auditor considers the use of an expert is: a) assessing the objectivity of the expert. b) assessing the need to use an expert. c) assessing the expert's report. d) determining the scope of the work to be carried out.