Acc555 Week 1 Homework

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Week 1 Homework (2-7, 2-10, 2-16, 2-20, 3-23, 3-25, 3-26) David Carlile Saturday March 3, 2012 2.7 Who is responsible for establishing auditing standards for audits of public companies? Who is responsible for establishing auditing standards for audits of private companies? Explain. Sarbanes-Oxley Act established the PCAOB for auditors of public companies to establish auditing standards. The AICPA established auditing standards for private companies. Audits for US public and private companies are based primarily on standards previously established by the ASB. When a reference is made to a Statement of Audit, standards SAS issued by ASB the standards applies to both private and public companies unless otherwise noted. 2.10 GAAS have been criticized by different sources for failing to provide useful guidelines for conducting an audit. The critics believe the standards should be more specific to enable practitioners to improve the quality of their performance. As the standards are now stated, some critics believe that they provide little more than an excuse to conduct inadequate audits. Evaluate the criticism of the 10 GAAS. GAAS and SAS provide less direct to auditors. No specific audit procedures are required by the standards. No specific requirement for auditors decisions such as determining sample sizes, selecting sample items from the populations for testing or evaluating results. Standards should provide clearly defined guidelines. 2-16 The following questions deal with general audited standards. Choose the best response. A. The first general standard, which states in part that the audits must be performed by a person or persons having adequate technical training, requires that an auditor have: A. 1. Education and experience in the field of auditing. B. Which of the following is best described by generally accepted

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