Which of the Following Accurately Depicts the Auditor's Responsibility with Respect

question 277

Multiple Choice

Which of the following accurately depicts the auditor's responsibility with respect to Statements on Auditing Standards?

• A) The auditor is required to follow the guidance provided by the Standards, without exception.
• B) The auditor is generally required to follow the guidance provided by Standards with which he or she is familiar, but will not be held responsible for departing from provisions of which he or she was unaware.
• C) The auditor is generally required to follow the guidance provided by the Standards, unless following such guidance would result in an audit that is not cost-effective.
• D) The auditor is generally required to follow the guidance provided by the Standards, and should be able to justify any departures.

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Definitions:

Statutory Interpretation

The process by which courts determine the meaning of legislation and apply it to specific cases.

Stare Decisis

The legal principle of determining points in litigation according to precedent, ensuring consistency and predictability in the law.

Doctrine

A principle or body of principles presented for acceptance or belief, as by a religious, philosophical, political, scientific, or legal system.

Legal Realists

A group of scholars who argue that law is not a set of abstract rules but is influenced by social and political factors.