AUD 6.9 - Ethical Requirements Of The GAO And DOL

Question 1

The ethical principles that guide the orc of auditors who conduct audits in accordance with GAGAS are:

Answer 1

Serving the public interest
Integrity
Objectivity
Proper use of governmental information
Resources and positions
Processional behavior

Question 2

The general standards provide guidance for performing financial adits, attestation engagements, ad performance audits under GAGAS. These standards address:

Answer 2

Independence
Professional judgement
Competence
Quality control
Assurance

Question 3

An external peer review is required under the GAO and GAGAS how often?

Answer 3

Every three years

Question 4

What are the threats to independence identified by GAGAS?

Answer 4

Self-interest threat
Self-review threat
Bias threat
Familiarity threat
Undue influence threat
Management participation threat
Structural threat

Question 5

What are some examples of safeguards the GAGAS recommends to threats?

Answer 5

Consulting an independent third party
Involving another audit organization to perform or reperform part of the audit
Professional staff member who was not a member of the audit team review the work performed
Removing an individual from the team when that individuals financial interest or relationship poses a threat

Question 6

Examples of activities that are considered management responsibilities and would therefore impair independence if performed for an audited entity according to GAGAS and GAO include:

Answer 6

Setting policies and strategic direction
Directing and accepting responsibility for actions of the audited entity’s employees
Having custody of the entity’s assets