Chapter+2-+THE+ Professional+ Standards PDF

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Chapter 2- The Professional Standards S1: The Generally Accepted Auditing Standards provide the minimum requirements in the conduct of audit. True S2: Quality Review Commission is the one who conduct a quality review on applicants for registration to practice public accountancy. False S1: In the aud...

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Chapter 2- The Professional Standards 1. S1: The Generally Accepted Auditing Standards provide the minimum requirements in the conduct of audit. True S2: Quality Review Commission is the one who conduct a quality review on applicants for registration to practice public accountancy. False 2. S1: In the auditing environment, failure to meet auditing standards is often accepted practice. False S2: Standards on Fieldwork states the requirements of the auditor in the conduct of audit. False 3. S1: Quality Review Committee is the one who conducts a quality review on applicants for registration to practice public accountancy. True S2: The auditor is not liable to his client for his errors in application of judgment. True 4. S1: In the auditing environment, failure to meet auditing standards is often tantamount to criminal behavior. False S2: The auditor is liable to his client for his errors in application of judgment. False 5. S1: GAAS is grouped into two standards. False S2: In the auditing environment, failure to meet auditing standards is often conclusive evidence of negligence. True 6. S1: Auditors should either maintain independence in fact or independence in appearance. False S2: GAAS has ten standards. True 7. S1: The auditor is not liable to his client for his dishonesty. False S2: Standards are established to measure the quality of performance of individuals and organizations. True 8. S1: Standards on reporting states the minimum requirements in expressing opinions. True S2: Auditors should verify first the integrity of the client before to accept an engagement. True 9. S1: The Generally Accepted Accounting Principles provide the minimum requirements in the conduct of audit. False S2: The standard of due care requires the auditor to possess skills clearly above the average for the profession. False 10. S1: The standard of due care requires the auditor to apply judgment in a conscientious manner, carefully weighing the relevant factors before reaching a decision. True S2: The certificate of accreditation to practice public accountancy is only valid for 3 years and not subject to renewal. False 11. S1: Professional skepticism is an application of training, knowledge and experience in making informed decisions during the audit. False

S2: Sufficiency of audit evidence means that the quantity should be met. False 12. S1: Professional judgment involved critical assessment of evidence. False S2: If risk of material misstatement assessed at high level, the nature of the auditor’s procedures should be more effective. True 13. S1: If risk of material misstatement assessed at low level, the timing of the procedures should be at year end. False S2: Professional judgment is an application of training, knowledge and experience in making informed decisions during the audit. True 14. S1: Evidence directly acquired by auditors are more reliable compared with evidence coming from external. True S2: If risk of material misstatement assessed at low level, the extent of the samples should be larger. False 15. S1: Sufficiency is more preferable in gathering audit evidence. False S2: If risk of material misstatement assessed at high level, the nature of the auditor’s procedures should be less effective. False...