Acc410 Week 1

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Week 1 Assignment ACC410: Auditing (BBO1307A) Instructor: Thomas Badley Week 1 Assignment Required List on the left side of a sheet of paper the generally accepted auditing standards that were violated by Jones, and indicate how the actions of Jones resulted in a failure to comply with each standard. Organize your answers as follows: Generally Accepted Auditing Standards | Actions by Jones Resulting in Failure to Comply with Generally Accepted Auditing Standards | General Standards | | 1) The auditor must have adequate technical training and proficiency to perform the audit. | Jones hired two accounting students to conduct the audit. Although he spent several hours explaining what to do, the students were not at all qualified to perform the audit without supervision. | 2) In all matters relating to the assignment, independence in mental attitude is to be maintained by the auditor or auditors. | | 3) Due professional care is to be exercised in the performance of the audit and the preparation of the report. | Jones was not acting with due professional care by employing two unqualified students to perform the audit or by not doing the audit himself. | Standards of Fieldwork | | 1) The work is to be adequately planned and assistants, if any, are to be properly supervised. | The students hired to perform the audit were not supervised properly, if at all. | 2) A sufficient understanding of internal control is to be obtained to plan the audit and to determine the nature, timing, and extent of tests to be performed. | Jones instructed the students not to spend time reviewing controls; therefore the nature, timing and extent of tests that needed to be performed were not planned sufficiently. Consequently, the audit did not reveal anything substantial about the management of the business (fraudulent activity, accuracy of

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