Important questions: 1. Why is auditing important to the capital markets? 2. Why does management have an incentive to misstate financial statements? 3. What are the general audit standards, standards of field work, and standards of reporting? Do they change with each audit? 4. What are management's assertions about the financial statements ? 5. Describe the main features or statements in an audit report. 6. What is PCAOB's role in the auditing profession? 7. What are the three standard-setting organizations for establishing auditing standards? 8. What are special responsibilities of auditors other than conducting a competent audit? Give examples. 9. What are the six principles of the AICPA Code of Professional Conduct? 10. What are the five major rules for the AICPA Code of Professional Conduct