Professional Standards

Question 1

Which of the following has the lowest authoritative status but may be useful in assisting the auditor in applying the SASs?

Statements on Auditing Standards.

Auditing Statements of Position.

Journal of Accountancy articles.

Auditing Interpretations.

Answer 1

Journal of Accountancy articles.

This answer is correct because Journal of Accountancy articles have no authoritative status but may be useful in applying SASs.

Question 2

Interpretive publications include all of the following, except for

Appendices to Statements on Auditing Standards.

Articles in the AICPA’s Journal of Accountancy.

Auditing guidance included in AICPA Audit and Accounting Guides.

Auditing interpretations of the Statements on Auditing Standards.

Answer 2

Articles in the AICPA’s Journal of Accountancy.

Articles in the Journal of Accountancy have no authoritative status, and would be classified as other auditing publications.

Question 3

In AICPA professional standards, the word should indicates an (a)

Interpretive suggestion that does not constitute a professional requirement.

Unconditional requirement with which the auditor is obligated to comply.

Presumptively mandatory requirement from which the CPA may depart in rare circumstances.

Recommendation that has no authoritative status.

Answer 3

Presumptively mandatory requirement from which the CPA may depart in rare circumstances.

The word should indicates a presumptively mandatory requirement.