The requirement for an auditor to exercise care and skill has been well established in law. In 1970, the judgement in Pacific Acceptance Case provided a comprehensive exposition of this concept in a modern setting. In deciding the case, the judge outlined principles of good practice for the conduct of an audit.

Required:

a) Identify 4 principles of good practice from the Pacific Acceptance Case.

b) Briefly outline where application of these principles is now a requirement of an auditing standard. In your answer, ensure that you provide the references to paragraphs of the auditing standards that you give as examples.