The third general standard states that due care is to be exercised in the performance of an audit. This standard is ordinarily interpreted to require:

Question

Quizplus · Accepted Answer

Choice "D" is correct. The third general standard of due care is ordinarily interpreted to require critical review of the judgment exercised at every level of supervision, and the judgment exercised by those assisting in the audit. Choice "A" is incorrect. The third general standard of due care does not require a thorough review of the existing safeguards over access to assets and records. Choice "B" is incorrect. The standard of due care does not specifically require a limited review of the indications of employee fraud and illegal acts. Choice "C" is incorrect. The standard of due care does not require a review of audit staff training and proficiency.

The Third General Standard States That Due Care Is to Be