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    Bec MCQ Answers (Aud) : A1 (Audit Reports)

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    Daljeet Singh
    This document provides answers to multiple choice questions about auditing standards for non-issuers. It addresses topics such as what standards an auditor of a non-issuer must follow (ASB standards), when an auditor can depart from guidance in SASs (only with justification), and the definition of GAAS (measures of audit quality). The document establishes that SASs provide the most authoritative guidance for non-issuer audits.

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    Bec MCQ Answers (Aud) : A1 (Audit Reports)

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    Daljeet Singh
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    This document provides answers to multiple choice questions about auditing standards for non-issuers. It addresses topics such as what standards an auditor of a non-issuer must follow (ASB standards), when an auditor can depart from guidance in SASs (only with justification), and the definition of GAAS (measures of audit quality). The document establishes that SASs provide the most authoritative guidance for non-issuer audits.

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    This document provides answers to multiple choice questions about auditing standards for non-issuers. It addresses topics such as what standards an auditor of a non-issuer must follow (ASB standards), when an auditor can depart from guidance in SASs (only with justification), and the definition of GAAS (measures of audit quality). The document establishes that SASs provide the most authoritative guidance for non-issuer audits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    40 views2 pages

    Bec MCQ Answers (Aud) : A1 (Audit Reports)

    Uploaded by

    Daljeet Singh
    This document provides answers to multiple choice questions about auditing standards for non-issuers. It addresses topics such as what standards an auditor of a non-issuer must follow (ASB standards), when an auditor can depart from guidance in SASs (only with justification), and the definition of GAAS (measures of audit quality). The document establishes that SASs provide the most authoritative guidance for non-issuer audits.

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    BEC MCQ ANSWERS (AUD)

    A1 (Audit Reports)

    1. M1-(Professional Standards)

    MCQ-04640

    (1). Choice (a) is correct. An auditor of a nonissuer must conduct the audit in
    accordance with ASB Standards.

    Choice (b) is incorrect. An auditor of a nonissuer is not required to conduct the


    audit in accordance with PCAOB Standards.

    Choice (c) is incorrect. While an auditor is only required to conduct the audit in
    accordance with ASB Standards, the auditor may choose to follow PCAOB
    Standards as well.

    Choice (c) is incorrect. An auditor of a nonissuer is not required to conduct the


    audit in accordance with PCAOB Standards.

    MCQ-02299

    (2). Choice (d) is correct. The auditor is generally required to follow the
    guidance provided by Standards, and should be able to justify any departures.

    Choice (a) is incorrect. On rare occasions, the auditor may depart from the
    guidance provided by the SASs, but he or she must justify such departures.

    Choice (b) is incorrect. Lack of familiarity with a SAS is not a valid reason for
    departing from its guidance. The auditor is expected to have sufficient
    knowledge of the SASs to identify those that are applicable to a given audit
    engagement.

    Choice (c) is incorrect. The cost associated with following the guidance
    provided by SAS is not an acceptable reason for departing from its guidance.

    MCQ-03208

    (3). Choice (c) is correct. Generally accepted auditing standards (GAAS) are
    measures of the quality of the auditor’s performance, and guide the auditor in
    the performance of a properly planned and executed audit.

    Choice (a) is incorrect. GAAS are not “rules”, nor are they universally
    applicable. GAAS are measures of the quality of an auditor’s performance.

    Choice (b) is incorrect. The Auditing Standards Board (ASB) issues many types
    of pronouncements, including (but not limited to) “Statements on Auditing
    Standards” (SASs). While SASs are considered to be interpretations of GAAS,
    not all ASB pronouncements relate to audits. Therefore, just because
    something is issued by the ASB does not make it GAAS.
    Choice (d) is incorrect. Auditing standards differ from auditing procedures in
    that procedures relate to acts to be performed, whereas standards deal with
    the quality of the performance of those acts.

    MCQ-02298

    (4). Choice (c) is correct. General guidance provided by a Statement on


    Auditing Standards is most authoritative of level of auditing guidance for audits
    of nonissuers. Auditors are required to comply with SASs, and should be
    prepared to justify any departures therefrom.

    Choice (a) and (d) are incorrect. AICPA audit and accounting guides ana SAS
    interpretations are interpretive publications that provide guidance regarding
    how SASs should be applied in specific situations. They are not as authoritative
    as SASs.

    Choice (b) is incorrect. Journal of Accountancy articles have no authoritative


    status, but may be helpful to the auditor.

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