Homework Assignment Week 1 Essay

1186 Words Mar 10th, 2015 5 Pages
Homework Assignment Week 1

2-16 (Objective 2-6) The following questions deal with auditing standards. Choose the best response.
A. International Standards on Auditing are established by the:
(2) International Auditing and Assurance Standards Board.

B. Which of the following best describes what is meant by U.S. generally accepted auditing standards?
(2) Measures of the quality of the auditor’s performance.

C. The general group of U.S. generally accepted auditing standards includes a requirement that
(3) Due professional care be exercised by the auditor

D. What is the general character of the three generally accepted auditing standards classified as standards of field work?
(3) The criteria of audit planning and evidence gathering.
…show more content…
Howard Mobile Home has decided to issue stock to the public and wants Olson and Riley to perform all the audit work necessary to satisfy the requirements for filing with the SEC. Olson and Riley has never had a client go public before.
Required
A. What factors should Olson and Riley consider before accepting the engagement?
Factors that should be considered are that the auditors may not be as familiar as others when it comes to filing and dealing with the SEC since they have never had a company go public. Also the rules and regulations affecting filings with the SEC are extremely complex and most firms have a specialist who spends a large amount of time to get all the requirements.

B. List additional issues confronting auditors of companies that file with the SEC as compared to dealing with a private company audit client.
Additional issues confronting the auditors are the differences in auditing standards from private, which is held to the standards of GAAS, to public which is held to the standards of PCAOB.

3-23 (Objectives 3-1, 3-2, 3-3, 3-4, 3-8) The following questions concern unqualified audit reports. Choose the best response.
A. Which of the following statements about a combined report on the financial statements and internal control over financial reporting is correct?
(2) The report includes additional paragraphs for the definition and limitations of internal control.

B. The date of the CPA’s opinion on the financial statements of the client should be

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