A.
Introduction:Audit quality is maintained when audit is performed in accordance with the generally accepted auditing standards. It also provides a reasonable assurance that the financial statements and related disclosures are free from material misstatements and are presented in accordance with generally acceptable accounting principles.
To explain: The effect of positive firm culture and expert skills and qualities of engagement team on quality of audit.
B.
Introduction: Audit quality is maintained when audit is performed in accordance with generally accepted auditing standards. It also provides a reasonable assurance that the financial statements and related disclosures are free from material misstatements and are presented in accordance with generally acceptable accounting principles.
To explain: The factors which are outside the control of audit team to maintain quality for an audit.
C.
Introduction: Audit quality is maintained when audit is performed in accordance with generally accepted auditing standards. It also provides a reasonable assurance that the financial statements and related disclosures are free from material misstatements and are presented in accordance with generally acceptable accounting principles.
To explain:The importance of quality audit. Also, identify the parties which give extra importance on quality audit.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
- Explain how a strategic understanding of a client’s business may increase the value of the audit service.arrow_forwardAssume your firm has decided to move forward. Referring to your evaluation of internal and external factors. explain why it would be appropriate for the external audit team to accept the client audit request. using examples to support your responsearrow_forwardResearch "Auditor's Discussion and Analysis (AD&A)”. Do you think AD&A is a good idea? Explain your reasoning.arrow_forward
- 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.arrow_forwardHow does evidence contribute to conducting a complete and ethical audit?arrow_forwardWhich ethical principle is violated by an auditor who discloses information for personal gain? a. Confidentiality b. Objectivity c. Competency d. Integrityarrow_forward
- What type of audit report does a client typically want or hope for?arrow_forwardMoral legitimacy refers to the generalized perception or assumption of observers that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, and beliefs. Explain how moral legitimacy might be applied to assess the actions of audit firms.arrow_forwardWhat steps has the external auditing profession taken to minimize potential bias toward independent users and therby encourage auditor independence?arrow_forward
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningAuditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
- Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE LBusiness/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:CengageAccounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,