II. Financial Statement Audits - Professional Standards

Question 1

In AICPA professional standards, the word “should” indicates an (a)

Answer 1

“Presumptively mandatory” requirement from which the CPA may depart in rare circumstances.

Question 2

“Interpretive publications” include all of what?

Answer 2

• Appendices to Statements on Auditing Standards.
• Auditing guidance included in AICPA Audit and Accounting Guides.
• Auditing interpretations of the Statements on Auditing Standards.

Question 3

What are some examples of “Other Auditing Procedures”?

Answer 3

Articles in the Journal of Accountancy and the AICPA’s CPA Letter(and other professional publications), c_ontinuing professional education programs_, _textbooks_, etc.

Note: have no authoritative status

Question 4

Which of the following has the lowest authoritative status but may be useful in assisting the auditor in applying the SASs?

Answer 4

Journal of Accountancy articles have no authoritative status but may be useful in applying SASs.

These have authoritative status:

• Statements on Auditing Standards.
• Auditing Statements of Position.
• Auditing Interpretations.