Ac555 Week 1 Assignment

Chapter 2

Problems 2-7 - The PCAOB establishes auditing and quality control standards for public company audits while the Auditing Standards Board (ASB) is responsible for issuing pronouncements on auditing matters for all entities other than publicly traded companies. (Auditing and Assurances Services, 13th Edition. Pearson Learning Solutions pp. 30, 31). Problem 2-10 - As stated in our reading, the GAAS has no specific audit procedures and no requirements for decision making. Many believe think that the GAAS should provide more clearly defined guideline for determining the extent of evidence to be accumulated which would eliminate some difficulty auditor face in decisions making and provide a line of defense if a sue is filed against them for an inadequate audit. From the point of view of both the profession and the users of auditing services, there is probably greater harm in defining authoritative guidelines too specifically than too broadly. (Auditing and Assurances Services, 13th Edition. Pearson Learning Solutions p. 37).

Problem 2-16 - a. The first general standard, which states in part that the audit must be performed by a person or persons having adequate technical training, requires that an auditor have (1) education and experience in the field of auditing.

b. Which of the following best describes what is meant by generally accepted auditing standards? (2) Measures of the quality of the auditor’s performance.

c. The general group of the generally accepted auditing standards includes a requirement that (3) due professional care be exercised by the auditor.

d. What is the general character of the three generally accepted auditing standards classified as standards of field work? (3) The criteria of audit planning and evidence gathering.

Problem 2-20 – a. The ethical implications of Rossi and Montgomery’s accepting the engagement is whether they have the knowledge or competence to do all the audit requirements to file with the SEC since they have...