1. 10 pts. Describe a) what you believe to be the most important COSO component; and b) why. (If for some reason your mind has taken a nap, see question #2 which identifies all 5).
2. 5 pts. Accountants utilize the body of knowledge called GAAP in the performance of their duties partly to ensure comparability and consistency in the preparation of accounting records / financial statements. Auditors on the other hand perform their responsibilities following GAAS as defined within the AICPA SASs or PCAOB Auditing Standards. What does this use ensure?
3. 10 pts. Compare (similarities) OR contrast (differences) between the AICPA SASs & the PCAOB Auditing Standards.
4. 5 pts. In performing & conducting audit tests, what is the difference between tests of compliance versus substantive testing?