Ethics are 4 needed in the professions, but is not needed for society in general. a set of moral principles or values not formed by life experiences always incorporated in laws. The underlying reason for a code of professional conduct for any profession 29 is 0 the need for public confidence in the quality of service of the profession It provides a safeguard to keep unscrupulous people out. it is required by federal legislation it allows licensing agencies to have a yardstick to measure deficient behavior Matric Number The possibility that a business may not be able to repay a bank loan because 29 of an economic downturn is referred to as o materiality risk information risk interest rate risk business risk Auditors do not provide which of the following? assurance on financial statements assurance on the effectiveness of internal controls over financial reporting assurance on Corporate sustainability reports absolute assurance on the financial statements including assuming responsibility for them Auditors do not provide which of the following? assurance on financial statements assurance on the effectiveness of internal controls over financial reporting assurance on corporate sustainability reports absolute assurance on the financial statements including assuming responsibility for them A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to identify the alternative actions available. identify the ethical issues from the facts. determine who will be affected by the outcome of the dilemma. obtain the relevant facts. To obtain reasonable assurance about whether the financial statements as a 29 whole are free from material misstatement, the auditor must fulfill several performance responsibilities, including verifying that all audit work is performed by a CPA with a minimum of three years experience obtaining sufficient, appropriate audit evidence. exercising professional judgment. providing an opinion on the financial statements Describes factors that should keep the quality of audits high even though advertising and competitive bidding are allowed. Who is responsible for establishing auditing standards for privately held companies? Securities and Exchange Commission Public Company Accounting Oversight Board Auditing Standards Board National Association of Accounting In the auditing process. the types and amounts of evidence remain constant from audit to audit. the criteria for evaluating information will not vary depending on the information being audited the audit report communicates the auditors findings to users. records are gathered by the auditor to determine whether the audited information is stated in accordance with SEC standards. 20 Which of the following is not one of the responsibilities of an auditor under the principles underlying an audit of financial statements? possess appropriate competence and capabilities comply with relevant ethical requirements plan work and supervise assistants maintain professional skepticism and exercise professional judgment Explain what is meant by information risk, and list the FOUR (4) causes of this 9 risk. SAD 29 Which of the following is not one of the responsibilities of an auditor under the principles underlying an audit of financial statements? possess appropriate competence and capabilities comply with relevant ethical requirements plan work and supervise assistants maintain professional skepticism and exercise professional judgment Explain what is meant risk. information risk. and list the FOUR (4) causes of this 29 29 Sarbanes-Oxley and the Securities and Exchange Commission restrict auditors from providing many consulting services to their publicly traded audit clients. Which of the following is true for auditors of publicly traded companies?. They are restricted from providing consulting services to privately held companies.Il. There is no restriction on providing consulting services to non-audit clients. I only il only 1 and 11 Neither I nor 11 39 Principles related to the auditor's responsibilities in the audit stress three important personal qualities that the auditor should possess. List and discuss these three qualities