Ch02 - The Professional Standards

The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards.

• True
• False

The generally accepted auditing standards of field work include a requirement that the auditors obtain sufficient appropriate audit evidence.

• True
• False

The auditors' report on a corporation's financial statements usually is addressed to the president of the company.

• True
• False

The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards.

• True
• False

The first paragraph of the standard unqualified audit report is referred to as opening paragraph

• True
• False

An audit performed in accordance with generally accepted auditing standards generally should not be relied upon to provide absolute assurance that all illegal acts will be detected.

• True
• False

Responsibility for losses because of errors of judgment is required by the generally accepted auditing standard that states that due professional care is to be exercised in the performance of the audit

• True
• False

The generally accepted auditing standards include a requirement that the CPAs not accept as audit clients companies which compete directly with one another

• True
• False

Independence in appearance is the state of mind that permits the expression of a conclusion without being affected by influences that compromise professional judgement, allowing an individual to act with integrity, and exercise objectivity and professional skepticism.

• True
• False

Requirements for training, independence and due professional care are included in the General Standards category of the generally accepted auditing standards.

• True
• False