Distinguish between auditing standards and generally accepted accounting principles, and give two examples of each. Par
Posted: Thu May 05, 2022 5:25 am
Distinguish between auditing standards and generally accepted
accounting principles, and give two examples of each.
Part 1: Auditing standards:
A. represent the combination of the six principles and four of
the Statements on Auditing Standards (SASs) that are codified in
the AU-C sections.
B. represent pronouncements by any of the organizations
responsible for setting auditing standards. In the U.S. these
standards are set by the PCAOB for public companies and broker
dealers, and by the Auditing Standards Board of the AICPA for other
entities.
C. outline specific rules for accounting for transactions
occurring in a business enterprise for all private companies in the
United States.
D. are ten general guidelines to aid auditors in fulfilling
their professional responsibilities and maintain professional
skepticism and exercise professional judgment.
Part 2: Two examples of auditing standards are:
A. accounting for leases and accounting for fair value
assets.
B. expression of opinion on financial statements and accounting
for fair value assets.
C. SAS No. 128, Using the Work of Internal Auditors; and SAS
No. 125, Alert That Restricts the Use of the Auditor's Written
Communication
D. accounting for leases and SAS No. 125.
Part 3: Generally accepted accounting principles are:
A. general rules for accounting for transactions occurring in a
business enterprise established by the AICPA.
B. general rules for accounting for transactions occurring in a
business enterprise established by the PCAOB.
C. specific rules for accounting for transactions occurring in a
business enterprise established by the SEC.
D. specific rules for accounting for transactions occurring in a
business enterprise established by FASB.
Part 4: Two examples of generally accepted accounting
principles are:
A. expression of opinion on financial statements and accounting
for fair value assets.
B. accounting for leases and accounting for fair value
assets.
C. accounting for leases and adequacy of informative
disclosures.
D. expression of opinion on financial statements and adequacy of
informative disclosures.
accounting principles, and give two examples of each.
Part 1: Auditing standards:
A. represent the combination of the six principles and four of
the Statements on Auditing Standards (SASs) that are codified in
the AU-C sections.
B. represent pronouncements by any of the organizations
responsible for setting auditing standards. In the U.S. these
standards are set by the PCAOB for public companies and broker
dealers, and by the Auditing Standards Board of the AICPA for other
entities.
C. outline specific rules for accounting for transactions
occurring in a business enterprise for all private companies in the
United States.
D. are ten general guidelines to aid auditors in fulfilling
their professional responsibilities and maintain professional
skepticism and exercise professional judgment.
Part 2: Two examples of auditing standards are:
A. accounting for leases and accounting for fair value
assets.
B. expression of opinion on financial statements and accounting
for fair value assets.
C. SAS No. 128, Using the Work of Internal Auditors; and SAS
No. 125, Alert That Restricts the Use of the Auditor's Written
Communication
D. accounting for leases and SAS No. 125.
Part 3: Generally accepted accounting principles are:
A. general rules for accounting for transactions occurring in a
business enterprise established by the AICPA.
B. general rules for accounting for transactions occurring in a
business enterprise established by the PCAOB.
C. specific rules for accounting for transactions occurring in a
business enterprise established by the SEC.
D. specific rules for accounting for transactions occurring in a
business enterprise established by FASB.
Part 4: Two examples of generally accepted accounting
principles are:
A. expression of opinion on financial statements and accounting
for fair value assets.
B. accounting for leases and accounting for fair value
assets.
C. accounting for leases and adequacy of informative
disclosures.
D. expression of opinion on financial statements and adequacy of
informative disclosures.