Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 2, Problem 18DQP
a.
To determine
State the organization that is responsible for establishing Country U. S standards used by CPA firms while auditing financial statements prepared by organizations based in the Country U.S.
b.
To determine
Identify the organization that is responsible for establishing auditing standards internationally.
c.
To determine
Explain the extent to which AICPA auditing standards and international auditing standards similar.
d.
To determine
Identify the process of the AICPA Auditing Standards Board (ASB) used to develop AICPA auditing standards.
e.
To determine
Explain the extent to which PCAOB auditing standards are impacted by international standards.
f.
To determine
State the auditing standards that must be followed by the audit firm while auditing a client located in a foreign country that is listed on both a foreign stock exchange and Country U.S stock exchange.
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Chapter 2 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - State what is meant by the term peer review. What...Ch. 2 - Prob. 13.1MCQCh. 2 - Prob. 13.2MCQCh. 2 - Prob. 13.3MCQCh. 2 - Prob. 14.1MCQCh. 2 - Prob. 14.2MCQCh. 2 - Prob. 14.3MCQCh. 2 - Prob. 15.1MCQCh. 2 - Prob. 15.2MCQCh. 2 - Prob. 15.3MCQCh. 2 - Prob. 16DQPCh. 2 - Prob. 17DQPCh. 2 - Prob. 18DQPCh. 2 - Prob. 19DQPCh. 2 - Prob. 21DQP
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Similar questions
- Instructions: The audit profession is considered one of the important professions for society due to the number of users of financial statements who rely on it in making their economic decisions. The auditor of this data must obtain the confidence of the users of this data. Therefore, professional bodies have been formed to organize the work of the auditors, qualify them, and set their performance standards to achieve this confidence. Required: Talk about the international, American and Saudi professional bodies and their respective tasks and the standards they issuearrow_forwardWhy should multinational companies be concerned about auditing issues? Think about this in the context of an international setting and the link between auditing and corporate governance.arrow_forwardWhat does the future of audit look like? Critically discuss this question from the perspective of: a) The UK Government b) The Financial Reporting Council (FRC) c) Investors d) The Accountancy Professional Bodies e) Accountancy Firmsarrow_forward
- Who is responsible for establishing auditing standards foraudits of U.S. public companies? Who is responsible for establishing auditing standardsfor U.S. private companies? Explainarrow_forwardThe accounting firm you work for has been hired to conduct an audit of ABCIn * c' * s financial statements ABC Inc. is a US - based publicly traded company . In conducting your audit , the suitable criteria or financial reporting framework that you would likely be evaluating the financial statements und be : Generally Accepted Auditing Standards . International Financial Reporting Standards . Generally Accepted Accounting Principles. PCAOB Generally Accepted Auditing Standards COSO Framework.arrow_forwardUnlike some other countries, why do you think Malaysia has not experienced so many cases of its company auditors being brought to court for the audit done on a company’s financial statements? Related to this, what are your suggestions to improve the learning and practice of audit in the country?arrow_forward
- K Describe the role of International Standards on Auditing. What is the relationship between International Standards on Auditing and U.S. auditing standards? ww. Describe the role of International Standards on Auditing. International Standards on Auditing (ISAs) are issued by the 2 and are designed to auditing practices and related services throughout the world. 0/5 0/5 0/ (0/ (OAarrow_forwardBy using Hofstede's cultural dimension index in Exercise 4 of Chapter 2 and Gray's accounting values in Chapter 2 to discuss implications for American internal auditors who have to audit subsidiaries of a U.S. parent in Sweden, Korea and Brazil.Discuss:(1) the impact of Hofstede's cultural dimensions on relevant accounting values (conservatism, secrecy and level of disclosure) of accountants in these three countries, and(2) what American parent company and their internal auditors should do to cope with the impact of these accounting values on financial reporting of these subsidiaries.arrow_forwardFor each engagement described below, indicate whether the engagement is likely to be conducted under international auditing standards, AICPA auditing standards, or PCAOB auditing standards. An audit of a U.S. private company with no public equity or debt. An audit of a German private company with public debt in Germany. An audit of a U.S. broker-dealer registered with the SEC. An audit of a United Kingdom public company that is listed in the United STates and whose financial statements will be filed with the SEC. An audit of a U.S. not for profit organization An audit of a U.S. private company to be used for a loan from a publicly traded bank. An audit of a U.S. public company. An audit of a U.S. public company that is a subsidiary of a Japanese company that will be used for reporting by the parent company in Japan.arrow_forward
- Why is it important for U.S. accountants to be familiar with IFRS?arrow_forwardConsider the following statement and explain the relationship between legal compliance on a global level and ethical responsibilities of accountants and auditors: “Ethical values and legal principles are usually closely related, but ethical obligations typically exceed legal duties.”arrow_forwardWhich of the following is included in the regulation on the Auditors at the International level. I Setting minimum standards and requirements for auditors II Providing guidance for those countries with a well-developed national regulatory framework III Aiding intra-country recognition of professional accountancy qualification Only I is correct Only II is correct Both I and III are correct Both II and III are correctarrow_forward
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