Explanation Explanation for correct answer : d. As per AICPA, an auditor needs to obtain an assurance that the financial statement is free from error. An audit has some inherent limitations such as auditor cannot provide absolute assurance that financial statement is free from material misstatement, professional skepticism only on audits where risk is high. So, all options are correct. Explanation for incorrect answer : a. The auditor needs to obtain high level of assurance about the misstatements because if a material misstatement is missed, it may result in incorrect opinion on the financial statements...

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN: 9781337619455

Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher: Cengage Learning

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Question

Chapter 5, Problem 8CYBK

To determine

Introduction:There are two organizations which make auditing and accounting standards, AICPA (American Institute of certified public accountants) and PCAOB (Public company accounting oversight board). These two organizations have different roles and responsibility but also have some similarities as both perform accounting and auditing related works.

To choose: The statement that is included as part of AICPA’s principle governing an audit.

Expert Solution & Answer

Chapter 5 Solutions

Auditing: A Risk Based-Approach (MindTap Course List)

Ch. 5 - Prob. 1CYBK Ch. 5 - Prob. 2CYBK Ch. 5 - Prob. 3CYBK Ch. 5 - Prob. 4CYBK Ch. 5 - Prob. 5CYBK Ch. 5 - Prob. 6CYBK Ch. 5 - Prob. 7CYBK Ch. 5 - Prob. 8CYBK Ch. 5 - Prob. 9CYBK Ch. 5 - Prob. 10CYBK

Ch. 5 - Prob. 11CYBK Ch. 5 - Prob. 12CYBK Ch. 5 - Prob. 13CYBK Ch. 5 - Prob. 14CYBK Ch. 5 - Prob. 15CYBK Ch. 5 - Which of the following accounts would not be...Ch. 5 - Prob. 17CYBK Ch. 5 - Prob. 18CYBK Ch. 5 - Prob. 19CYBK Ch. 5 - Which management assertion is usually most...Ch. 5 - Prob. 21CYBK Ch. 5 - Prob. 22CYBK Ch. 5 - Prob. 23CYBK Ch. 5 - Prob. 24CYBK Ch. 5 - Prob. 25CYBK Ch. 5 - Prob. 26CYBK Ch. 5 - Prob. 27CYBK Ch. 5 - Prob. 28CYBK Ch. 5 - Prob. 29CYBK Ch. 5 - Prob. 30CYBK Ch. 5 - Prob. 31CYBK Ch. 5 - Prob. 32CYBK Ch. 5 - Prob. 33CYBK Ch. 5 - Prob. 34CYBK Ch. 5 - Prob. 35CYBK Ch. 5 - Prob. 36CYBK Ch. 5 - Prob. 37CYBK Ch. 5 - Prob. 38CYBK Ch. 5 - Prob. 39CYBK Ch. 5 - Prob. 40CYBK Ch. 5 - Prob. 41CYBK Ch. 5 - Prob. 42CYBK Ch. 5 - Prob. 43CYBK Ch. 5 - Prob. 44CYBK Ch. 5 - Prob. 45CYBK Ch. 5 - Prob. 46CYBK Ch. 5 - Prob. 47CYBK Ch. 5 - Prob. 48CYBK Ch. 5 - Prob. 1RQSC Ch. 5 - Prob. 2RQSC Ch. 5 - Prob. 3RQSC Ch. 5 - Prob. 4RQSC Ch. 5 - Prob. 5RQSC Ch. 5 - Prob. 6RQSC Ch. 5 - Professional guidance indicates that the auditor...Ch. 5 - Identify the accounts associated with the...Ch. 5 - Assume that an organization asserts that it has...Ch. 5 - Prob. 10RQSC Ch. 5 - Prob. 11RQSC Ch. 5 - Prob. 12RQSC Ch. 5 - Prob. 13RQSC Ch. 5 - List factors that might affect an audit firm’s...Ch. 5 - Prob. 15RQSC Ch. 5 - Prob. 16RQSC Ch. 5 - Prob. 17RQSC Ch. 5 - Prob. 18RQSC Ch. 5 - Prob. 19RQSC Ch. 5 - Prob. 20RQSC Ch. 5 - Prob. 21RQSC Ch. 5 - Prob. 22RQSC Ch. 5 - Prob. 23RQSC Ch. 5 - Prob. 24RQSC Ch. 5 - Prob. 25RQSC Ch. 5 - Prob. 26RQSC Ch. 5 - Prob. 27RQSC Ch. 5 - Prob. 28RQSC Ch. 5 - Prob. 29RQSC Ch. 5 - Prob. 30RQSC Ch. 5 - Prob. 32RQSC Ch. 5 - Prob. 33RQSC Ch. 5 - Prob. 34RQSC Ch. 5 - Prob. 35RQSC Ch. 5 - Prob. 36RQSC Ch. 5 - Prob. 37RQSC Ch. 5 - Prob. 38RQSC Ch. 5 - Prob. 39RQSC Ch. 5 - Prob. 40RQSC Ch. 5 - Prob. 42RQSC Ch. 5 - Prob. 43RQSC Ch. 5 - Prob. 44FF

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