The following questions deal with audits by public accounting firms. Select the best response for each question.

a. Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements?

(1) It is a customary courtesy for all shareholders of a company to receive an independent report on management's stewardship of the affairs of the business.

(2) It is management's responsibility to seek available independent aid in the appraisal of the financial information shown in its financial statements.

(3) The opinion of an independent party is needed because a company may not be objective with respect to its own financial statements.

(4) It is difficult to prepare financial statements that fairly present a company's financial position and cash flow without the expertise of an independent auditor.

b. The policies of Rogers & Co., public accountants, require that all members of the audit staff submit weekly time reports to the audit manager, who then prepares a weekly summary report for Rogers' review on any vari¬ ance from the budget. This practice is evidence of Rogers & Co.'s professional concern about compliance with which of the following generally accepted auditing standards?

(1) Quality control.

(2) Due professional care.

(3) Adequate review.

(4) Adequate planning.

(AICPA adapted)