1. Compare and contrast the meanings of the following 3 words: auditing, attestation, and assurance. What are the similarities and dissimilarities? 2. What is meant by the term "reasonable assurance" and how does that differ from "absolute assurance"? 3. How is "consulting" fundamentally different than "auditing"? 4. What is the role of the Securities and Exchange Commission (SEC) and why does the SEC have significant influence over the CPA profession? 5. What is the role of the Public Company Accounting Oversight Board (PCAOB) and why does the PCAOB have significant influence over the CPA profession? 6. Public companies are required by the SEC to have their financial statements audited. Why might a private company choose to have their financial statements audited, even though they might not be required to do so? Ch #2 (Professional Standards): 1. 2. 3. Describe the respective roles of GAAP and GAAS related to a financial statement audit. State the 10 standards that comprise Generally Accepted Auditing Standards. State the 7 "principles" underlying an audit according to the AICPA's recent "Preface to Codification of Statements on Auditing Standards" in connection with the AICPA's clarification and convergence project.