Chapter $2$ Questions $(10$ points$)$

$2-1$ What major characteristics of the organization and conduct of CPA firms permit them to fulfill their social function competently and independently?

$2-2$ What is the role of the Public Company Accounting Oversight Board $($PCAOB$)?$ How does the PCAOB provide oversight of audit firms?

$2-3$ Describe the role of the SEC in society and discuss its relationship with and influence on the practice of auditing. $2-4$ What are the purposes of the AICPA Statements on Standards for Attestation Engagements?

$2-5$ Who is responsible for establishing auditing standards for audits of U$.$S$.$ public companies? Who is responsible for establishing auditing standards for audits of U$.$S$.$ private companies? Explain.

$2-6$ Distinguish between auditing standards and generally accepted accounting principles, and give two examples of each.

$2-7$ Auditing standards have been criticized by different sources for failing to provide useful guidelines for conducting an audit. The critics believe the standards should be more specific to enable practitioners to improve the quality of their performance. Evaluate this criticism of auditing standards.

$2-8$ What is meant by the term quality control as it relates to a CPA firm?