II. Financial Statement Audits - GAAS and Principles

Question 1

According to GAAS, which of the following terms identifies a requirement for audit evidence?

Answer 1

GAAS requires the auditor to obtain “sufficient appropriate audit evidence…“

Question 2

An independent auditor must have which of the following?

Answer 2

Technical training that is adequate to meet the requirements of a professional.

Note: GAAS requires auditors to have adequate technical training and proficiency in auditing.

Question 3

The “exercise of due professional care” requires that an auditor

Answer 3

An exercise of due professional care requires that a critical review of the work completed and the judgments made be performed at every level of supervision.

Question 4

Which of the following underlies the application of generally accepted auditing standards, particularly the standards for obtaining sufficient appropriate audit evidence?

Answer 4

elements of materiality and audit risk underlie the application of generally accepted auditing standards.

Question 5

As guidance for measuring the quality of the performance of an auditor, the auditor should refer to

and

What is Meant by the term generally accepted auditing standards?

Answer 5

Generally accepted auditing standards.

Question 6

what is meant by the term generally accepted auditing standards?

in other words:

Generally accepted auditing standards are

Answer 6

Pronouncements issued by the Auditing Standards Board.