An audit is an independent examination conducted to ensure that the financial statements are true and fair. Auditing standards are certain defined rules and regulation that provide guidance to the auditors for conducting the audit efficiently and effectively. The auditing standards are followed to fulfill the objective of audit. Auditing standards are issued by American Institute of Certified Public Accountants (AICPA). To indicate: Whether the given statement is true or false.

Question

Registered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows:· integrity· objectivity· professional competence and due care· confidentiality· professional behaviorThe following actions taken by registered external auditors are example of non-compliance with one or more principles listed above; Question 3 Clark Parker the registered auditor in charge of the audit of Datatec Ltd, made racist comments concerningthe client’s staff during the audit planning session.

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Question

Chapter 4, Problem 11TFQ

To determine

Concept introduction: An audit is an independent examination conducted to ensure that the financial statements are true and fair. Auditing standards are certain defined rules and regulation that provide guidance to the auditors for conducting the audit efficiently and effectively. The auditing standards are followed to fulfill the objective of audit. Auditing standards are issued by American Institute of Certified Public Accountants (AICPA).

To indicate:Whether the given statement is true or false.

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Registered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows:· integrity· objectivity· professional competence and due care· confidentiality· professional behaviorThe following actions taken by registered external auditors are example of non-compliance with one or more principles listed above; Question 3 Clark Parker the registered auditor in charge of the audit of Datatec Ltd, made racist comments concerningthe client’s staff during the audit planning session.

Registered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows:· integrity· objectivity· professional competence and due care· confidentiality· professional behaviorThe following actions taken by registered external auditors are example of non-compliance with one or more principles listed above; Question 1 Mark Proctor, a registered auditor arranged with some of his clients to pay the fees that he charged for auditservices, in cash. For clients who agreed to do so, no VAT was charged and a discount was given.

Select one of the following principles of professional conduct to examine in the AICPA Code of Professional Conduct document: Responsibilities Public interest Integrity Objectivity and independence Due care Scope and nature of services