Standards

Question 1

Standards of Fieldwork

Answer 1

P- Planning and supervision
I- Internal Control, Entity, and Environment. Strong controls will imply the auditor require less evidence; weak controls imply the auditor will require more evidence
E- Evidence

Question 2

Standards of Reporting

Answer 2

ACDO:
A- accounting=GAAP explicit; opinion must state that the accounting used was GAAP
C- consistently between periods
implicit; silence is okay because it is implied
D- disclosure
implicit; silence is okay
O- express opinion
explicit; opinion must state “in our opinion”

Question 3

The Securities Act of 1933

Answer 3

requires most companies planning to issue new securities to the public to submit a registration to the public to submit a registration statement to the SEC

Question 4

The Securities Exchange Act of 1934

Answer 4

Secondary market provides additional protection for investors by requiring public companies to file detailed annual reports within the commission