Which of the Following Statements About Generally Accepted Audit Standards

question 78

Multiple Choice

Which of the following statements about Generally Accepted Audit Standards are true?
I.They serve as broad guidelines to auditors for conducting an audit engagement.
II.They are sufficiently specific to provide any meaningful guide to practitioners.
III.They represent a framework upon which the AICPA can provide interpretations..

• A)I and II
• B)I and III
• C)II and III
• D)I, II and III

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Definitions:

Actual Notice

Knowledge actually possessed by a person, as opposed to knowledge assumed or implied by law.

Tortious Act

A wrongful act that results in injury or harm, making the person who commits the act liable to legal action.

Principal Authorization

The granting of authority by a principal to an agent to perform acts or make decisions on the principal's behalf, often within a specific scope.

Undisclosed Principal

A situation in which an agent acts on behalf of a principal, but the identity of the principal is not revealed to the third party at the time of the transaction.