The ten generally accepted auditing standards (GAAS) provide the foundation for the conduct of audits.

Required

a. Define the standard of "due professional care" and indicate how a court might decide whether an audit firm met the standard.

b. Explain why independence is often considered the cornerstone of the auditing profession. Explain why independence issues were a primary concern of Congress when they developed the Sarbanes Oxley Act.

c. Assume you work on an audit engagement for a client for some period of time. Further, assume there have never been any audit issues with the client, management is very honest and forthcoming, and the company is well run. Explain how you would retain your professional skepticism.

d. If an auditor is engaged to conduct an audit and finds numerous mistakes, is it possible for the auditor to resign and not issue an audit opinion? Explain.