Questions which of the following statements regarding Standards The PCAO conducts inspections of registered accounting terms to evaluate the compliance with the of PCAC and SEC None of the above The PCAOs provides oversight for auditors of private companies, establishes auditing attestation and quality control standards. The securities exchange act of 1934 provides additional protection by requiring public companies to file detailed annual reports with the commission 33 minutes remaining Question 1 Point Which of the following statements regarding auditing standards and principles is incorrect To adequately assess the risk of material misstatements, the auditors must have an understanding of the client's business and industry The AICPA and the PCAD issue new statements when an auditing problem arises of sumicient importance to warrant an official interpretation The AICPA principles and the auditing standards should be viewed by practitioners as maximum standards of performance rather than as minimum standards or ideals. The auditor is responsible for determining and applying an appropriate materiality level or levels throughout the audit. throughout the audi Question 8 Point Which of the following statements regarding the independence rule is incorrect? Independence rule does not apply to services such as tax returns and management services provided by . Independence rules also apply to other types of attestation such as review services and audits of prospective financial statements. The AICPA Code prohibits covered members from owning any stock or other direct investment in audit clients regardless of materiality. Materiality affects whether ownership is a violation of independence only for direct ownership