Chapter 3 of the Yellow Book presents four general standards for government audits. These standards are: (1) Independence; (2) professional judgment; (3) competence; and (4) quality control and assurance. Write a summary of the key components of the four general standards. Your answer should include discussion of the following topics and, for each, should show a typical or example application:

• Independence: reasons for and meaning of independence
• Types of impairments to independence
• The effects of nonaudit services on auditors independence
• Meaning of professional judgment
• Elements of competence
• Requirements for Continuing Professional Education (CPE)
• Elements of quality control and assurance
• Requirements for external peer review