a.
Introduction: External audit is examining the financial statements of an organization independently. This examining is based on certain rules and laws to check the accuracy of the company’s record. This type of audit is independent in nature.
To describe:The role of Congress and in which way it affects external auditing profession.
b.
Introduction: External audit is examining the financial statements of an organization independently. This examining is based on certain rules and laws to check the accuracy of the company’s record. This type of audit is independent in nature.
To describe: The role of PCAOB (Public Accounting Oversight Board) and in which way it affects external auditing profession.
c.
Introduction: External audit is examining the financial statements of an organization independently. This examining is based on certain rules and laws to check the accuracy of the company’s record. This type of audit is independent in nature.
To describe: The role of SEC (Securities and exchange commission) and in which way it affects external auditing profession.
d.
Introduction: External audit is examining the financial statements of an organization independently. This examining is based on certain rules and laws to check the accuracy of the company’s record. This type of audit is independent in nature.
To describe: The role of AICPA (American Institute of Certified Public Accountants) and in which way it affects external auditing profession.
e.
Introduction: External audit is examining the financial statements of an organization independently. This examining is based on certain rules and laws to check the accuracy of the company’s record. This type of audit is independent in nature.
To describe: The role of CAQ (The Centre for Audit Quality) and in which way it affects external auditing profession.
f.
Introduction: External audit is examining the financial statements of an organization independently. This examining is based on certain rules and laws to check the accuracy of the company’s record. This type of audit is independent in nature.
To describe: The role of IAASB (International
g.
Introduction: External audit is examining the financial statements of an organization independently. This examining is based on certain rules and laws to check the accuracy of the company’s record. This type of audit is independent in nature.
To describe: The role of COSO (Committee of Sponsoring Organizations of the Treadway Commission) and in which way it affects external auditing profession.
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Chapter 1 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
- 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.arrow_forwardWhich of the following agencies issues independence rules for the auditors of public companies?a. Financial Accounting Standards Board (FASB).b. Government Accountability Office (GAO).c. Public Company Accounting Oversight Board (PCAOB)d. AICPA Accounting and Review Services Committee (ARSC)arrow_forwardThe AICPA has issued several audit and accounting guides for specialized industries. Do auditors have a responsibility to refer to these guidelines when auditing clients to those industries?arrow_forward
- Which section of the regulations require a CPA to comply with Generally Accepted Accounting Principles and Generally Accepted Auditing Standards? If compliance is required by other organizations (PCAOB, AICPA, etc.) why do you think this requirement is also included in the regulations?arrow_forwardWho develops and implement policy on the engagement of the external auditor to supply non-audit services ? Audit Committee Chief Executive Officer Management Board of Directorsarrow_forwardDefine the key terms below that relate to auditing of government and not-for-profit organizations in your own words. Be sure that you relate the terms to each other in your paragraph. Attestation engagement Generally Accepted Auditing Standards (GAAS) Opinion audits Materiality Financial auditarrow_forward
- Which of the following individuals is incharge of the Policies and Procedures of the Organization Chief Audit Executive only Management Certified Public Accountant Internal Auditorarrow_forwardWhat is the Committee of Sponsoring Organizations (COSO)? Summarize its history and explain why it is relevant to auditing. Explain what internal control means and explain how internal control relates to auditing. Please provide references if any.arrow_forwardSelect the necessary words from the list of possibilities to complete the following statements: assertion, codification, financial reporting framework, generally accepted accounting principles, International auditing and assurance standards board, interpretations, professional skepticism, quality control, shareholders, and statements on auditing standards Statements Answer 1. The purpose of an audit conducted in accordance with generally accepted auditing standards is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable __________. 2. The serially numbered pronouncements issued by the Auditing Standards Board of the AICPA as generally accepted auditing standards are known as __________. 3. Investors need to compare financial statements of different companies. The standards most frequently followed to prepare…arrow_forward
- Explain the content of each section of the AICPA audit report. Evaluate the importance of each section with respect to the users of financial reports.arrow_forwardWhich of the following engagements is most likely to be considered an operational audit? The auditor determines whether the organization is following provisions of laws and regulations. The auditor examines information presented in an entity’s financial statements to determine whether the financial statements are presented fairly in accordance with the applicable financial reporting framework. The auditor evaluates the organization’s efficiency in processing payments. The auditor assists the client in preparation of financial statements.arrow_forwardWhich of the following stakeholders rely on internal audit report? a. General public b. Investors c. Government agencies d. Managementarrow_forward
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning