Q2 Audit Ch. 2 Professional Standards

Which of the following situations would most likely be in conflict with the responsibilities principle?

Auditors are directly involved with a client manager in a strategic decision-making capacity.

Which of the following statements is generally correct about the appropriateness of audit evidence?

Auditors' direct personal knowledge, obtained through observation and inspection, is of higher quality than information obtained indirectly from independent outside sources.

An important role of the Public Company Accounting Oversight Board is to oversee the

regulation of firms that audit issuers.

Which of the following is not included in the auditors' standard report representing an unmodified opinion?

An indication that all appropriate disclosures have been made and included in the financial statements.

An audit of the financial statements of Camden Corporation is being conducted by external auditors. The external auditors are expected to:

give an opinion on the fair presentation of Camden's financial statements in conformity with the applicable financial reporting framework (e.g., GAAP, IFRS).