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QUESTION 4: Select the best answer for each of the following items and give reason for your choice. a) The three generally accepted auditing standards classified as standards of field work may be summarized as: 1) The need to maintain an independence in mental attitude throughout the audit. 2) The criteria for audit planning and evidence-gathering. 3) The criteria for the content of the auditors' report on financial statements. 4) The competence, independence, and professional care to be exerted while performing the audit. (4 Marks) b) A basic objective of a CPA firm to provide professional services that conform with professional standards. Reasonable assurance of achieving the basic objective is provided through: 1) Compliance with generally accepted reporting standards. 2) A system of quality control. 3) A system of peer review. 4) Continuing professional education. (4 Marks) c) Which of the following is not explicitly included in an unqualified standard audit report? 1) The CPA's opinion that the financial statements comply with generally accepted accounting principles. 2) That generally accepted auditing standards were followed during the audit. 3) That the internal control structure of the client was satisfactory. 4) The subjects of the audit. (4 Marks) d) The general group of the generally accepted auditing standards requires that: 1) The auditors maintain an independent mental attitude. 2) The audit be conducted in conformity with generally accepted accounting principles. 3) Assistants, if any, be properly supervised. 4) The auditor obtains an understanding of the internal control structure. (4 Marks) e) Which quality control standard would most likely be satisfied when a CPA firm maintains records indicating which partners or employees of the firm were previously employed by the records indicating which partners or employees of the firm were previously employed by the CPA firm's client? 1) Professional relationship. 2) Supervision. 3) Independence. 4) Advancement. (4 Marks)