Revise Each Statement Below So That It More Clearly Upholds

question 41

Essay

Revise each statement below so that it more clearly upholds the indicated generally accepted auditing standard.1) Training: Alexis completed an online course on professional etiquette.2) Evidence: Allison checked the employment references of an audit client's CEO as part of evaluating the CEO's credentials.3) Report: Ann used her own words to express a report on the truth of an audit client's financial statements.4) Independence: Blaine accepted an audit engagement with a firm owned by his mother-in-law.5) Professional care: Brent randomly selected auditors in his firm as part of developing an audit team.6) Internal control: Crystal used expectancy theory to assess internal control as part of an audit.7) Supervision: Lindsay, the manager of an audit team, scrutinized the work of all auditors on her team equally, regardless of their experience or the tasks they were completing.8) Consistency: Louis explained a change between the applications of GAAP in 2008 and 2011.9) Disclosure: Nicole personally prepared the footnotes for an audit client's financial statements to ensure all disclosures were properly done.10) GAAP: Ralph determined that a client's financial statements were truthfully and accurately presented in accordance with generally accepted auditing standards.

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Definitions:

Target Payoffs

Expected or desired financial returns from an investment strategy or economic activity.

Collusion

An agreement between firms, typically secret, to limit competition among themselves, such as by setting prices or output levels.

Diagram

A simplified drawing showing the appearance, structure, or workings of something in a conceptual or visual form.

Profits

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.