Identify Each of the Following Statements as Being Related to the Responsibilities

question 1

Short Answer

Identify each of the following statements as being related to the responsibilities (RSP),performance (P),or reporting (RPT)principles.
______ 1.Evaluating audit firm personnel's independence with respect to a prospective client.
______ 2.Gathering sufficient,appropriate evidence.
______ 3.Exercising an appropriate level of professional skepticism.
______ 4.Issuing a qualified opinion because of a material,yet not pervasive,departure from GAAP.
______ 5.Establishing materiality levels for use in determining the amount of evidence to be gathered.
______ 6.Considering the susceptibility of the account balance to misstatement to assess the risk of material misstatement.
______ 7.Possessing the appropriate competence and capabilities to perform the audit.
______ 8.Considering whether a scope limitation precludes sufficient evidence to allow an opinion to be expressed on the entity's financial statements.
______ 9.Planning the work to provide reasonable assurance that the financial statements are free from material misstatement.
______ 10.Evaluating the potential relationships between the auditor and family who are employed by the entity.

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Definitions:

Walking Purchase

A controversial 1737 agreement where Pennsylvania colonists claimed to have purchased land from the Lenape Indians based on the distance covered in a day and a half walk, significantly expanding colonial territory.

Delaware Indians

A Native American tribe originally located in the Delaware River area, also known as the Lenape.

Beaver Pelts

Beaver pelts refers to the fur of beavers, which was highly sought after for the manufacture of hats and garments, especially in the 17th and 18th centuries, driving the North American fur trade.

Sioux

A group of Native American tribes and First Nations peoples primarily inhabiting the Great Plains of the United States and Canada.